Monetary And Fiscal Policy Macroeconomic Outcomes: The Case Of Lebanon
This paper presents a macroeconomic model designed for Lebanon to analyze the impact of monetary and fiscal policy on macroeconomic outcomes under alternative assumptions related to the funding of fiscal budgetary deficits. The model emphasizes on the importance of rational expectations and the maintenance of continual equilibrium in financial markets but disequilibrium in non financial markets during the adjustment process arising from exogenous shocks. The model is empirically estimated using annual data for 1970-2000, and various monetary and fiscal policy scenarios, which are numerically simulated. Key policy implications from conducted simulations are emphasized. Simulation results indicate that government capital expenditure is preferred to government current expenditure in terms of producing favorable impacts upon private sector investment and the supply side of the economy and external developments. A gradual, rather than instantaneous, implementation of such expenditure results in considerably less volatility in terms of major macro outcomes during the adjustment process.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): IV (2006)
Issue (Month): 4 (November)
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:icf:icfjmo:v:04:y:2006:i:4:p:64-85. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.