H6 - National Budget, Deficit, and Debt

• Les effets macroéconomiques des déficits budgétaires : résultats d'un modèle de simulation

  Technical Report No. 47 Pierre Duguay, Yves Rabeau

  An increase in a government deficit can have two effects: short-term stimulation of aggregate demand and employment, and long-term contraction of potential output. In this paper, these effects are illustrated using a dynamic, macroeconomic simulation model. The model is not a forecasting tool; it is intended to bridge the gap between Keynesian and supply-side economics […]

  Content Type(s): Staff research, Technical reports Topic(s): Economic models, Fiscal policy JEL Code(s): H, H6, H60