Series: IMF Working Papers
Author(s): Michael Kumhof , and Douglas Laxton
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 2009
Keywords: Non-Ricardian Households, Government Deficits, Global Current Account Imbalances, current account, fiscal deficits, government spending, Open Economy Macroeconomics, International Policy Coordination and Transmission, Fiscal Policies and Behavior of Economic Agents: General,
The effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implicatio...