Tax multipliers and monetary policy: Evi
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Jones, Paul M.; Olson, Eric
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Article
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2014
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Elsevier Science
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English
โ 470 KB
## h i g h l i g h t s โข We extend Romer and Romer (2010) and allow for nonlinearities between fiscal policy shocks and gdp. โข The best fitting threshold variable is the federal funds rate with a delay of 2. โข The tax multiplier is 4 times larger with accommodative monetary policy.