The Impact of Macroeconomic in Public Debt Regime Switch

• Main Authors: Yang , Hui-Ju, 楊惠如
• Other Authors: Sun ,Yu-Fong
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/11924423507931300985

碩士 === 嶺東科技大學 === 財政系財稅與會計資訊碩士班 === 102 === The main purpose of this paper is to explore the impact of expansionary fiscal policy on the economy when the government issued bonds financing government spending. We focus on the dynamic effects of expansionary fiscal policy because it could not improve the government budget deficit makes the bonds increased. When the debt ceiling reached, debt financing of government budget deficits cannot continue, the need to reduce government spending. Our approach is a combination of Blanchard (1981) and Blinder and Solow (1973) model and the regime reform analysis method to analyze the impact of fiscal policy cannot continue on the economy. We found that long-term output may increase, may also be reduced and short-term dynamic adjustment path, there are three types: (1) continue to rise, (2) diminishing, (3) first reduce and then rise. Keywords: debt crisis, public debt, regime switch, fiscal policy.