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	Comparative dynamics under 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	Using a small open economy model of endogenous growth with public capital accumulation, we show that debt policy rules that respond flexibly to business cycles contribute to macroeconomic stabilization. Unlike strict debt policy rules, which require the debt-to-GDP ratio to adjust monotonically towards a long-run target, flexible debt policy rules can eliminate belief-driven business cycles due to equilibrium indeterminacy. The flexible debt policy rules can also generate unstable closed orbits, leading to endogenous business cycles under equilibrium determinacy. While existing theoretical studies assume strict rules in line with the Stability and Growth Pact (2011) as debt policy rules for EU countries, we find that it is the flexible rules that fit the EU country panel data.