モリモト　ケイイチ   MORIMOTO KEIICHI   盛本　圭一    所属   明治大学  政治経済学部    職種   専任准教授
言語種別	英語
発行・発表の年月	2023/04
形態種別	その他
標題	Flexible debt policy rules in an open economy
執筆形態	共著(筆頭者)
掲載誌名	Social Science Research Network eLibrary
掲載区分	国外
出版社・発行元	Elsevier
巻・号・頁	abstract_id=4406218
担当区分	筆頭著者,責任著者
著者・共著者	MORIMOTO Keiichi, TAKIZAWA Reo
概要	Through a comparative dynamic analysis, we argue that the reality of public debt issuance, which responds flexibly to business cycles in contrast to the EU’s institutionally prescribed fiscal discipline, may contribute to macroeconomic stabilization. Through a simple econometric analysis, we find that the real operations of public debt management in European countries with excessive public debt are rather consistent with such flexible rules, even though the official EU fiscal discipline requires that the debt-to-GDP ratio be kept monotonically close to its long-run target. Using a small open economy model of endogenous growth, we demonstrate that the flexible debt policy rule serves to eliminate sunspot fluctuations due to equilibrium indeterminacy that occurs under official fiscal discipline. We also find that the flexible rule can lead to endogenous business cycles that depend only on economic fundamentals under equilibrium determinacy.