We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Monetary and Fiscal Policy in a World of Capital Mobility: A Reply.
- Authors
Floyd, John E.
- Abstract
The author clarifies points raised in his paper about monetary and fiscal policy in a world of capital mobility by critic, Edward Tower. The critic has accurately corrected an error in the paper and in the process, working out exact time paths of the variables. Unfortunately, Tower did not go quite as far as he could have in signing his results. His conclusions with respect to the long-run effects of changes in government expenditure are therefore unnecessarily equivocal, and the fiscal policy results in the earlier paper turn out to be correct. Tower's emphasis on dynamics, while useful, is somewhat misplaced because of his inappropriate theory of the transition state. Usable information about the short-run effects of economic policy cannot be obtained without taking into consideration the kinds of lagged responses that are likely to occur.
- Subjects
MONETARY policy; FISCAL policy; ECONOMIC policy; PUBLIC spending; MONETARY theory; TOWER, Edward; ECONOMICS
- Publication
Review of Economic Studies, 1973, Vol 40, Issue 2, p299
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2296657