Endogenous and Temporary Monetary and Fiscal Policy         in Open Economies
{'Code': '04050100', 'Directorate': {'LongName': 'Direct For Social, Behav & Economic Scie'}, 'Division': {'LongName': 'Divn Of Social and Economic Sciences'}}
{'SignBlockName': 'jerry blackmon'}
This research examines the effects and relevance of temporary                   policies, both when policy is actually temporary, and when                      temporariness lies in the background as a credible threat (like a               temporary capital levy which may not be observed, but it is                     important enough to influence the rate of capital accumulation).                The distinction between temporary and permanent policy is well                  recognized in modern macroeconomics but permanent policy is still               the dominant paradigm in open-economy macroeconomics (e.g., the                 gains-from-trade literature that lies at the heart of recent                    structural adjustment programs).                                                                                                                                The project has two main parts:  Endogenous Policy and Temporary                Policy.  The first part investigates models in which the                        government maximizes social welfare without pre-commitment.  In                 particular, the role of debt repudiation--direct or through                     inflation or devaluation--will be analyzed.  The second part--                  temporariness--will study effects of fiscal and monetary policies               that are temporary or non-credible.  Special attention will be                  placed on staggered prices, flexible exchange rates and                         uncertainty.                                                                                                                                                    Most of the questions examined in this research are relevant for                open economies where international capital mobility has a                       significant role.  One of the results suggested by the author's                 earlier work is that the costs of temporary (e.g. non-credible)                 policy can be substantial, particularly when countries have easy                access to the international capital market, as during the 1970's.               This hypothesis is explored in the context of different relevant                scenarios.  At a deeper level, the research attempts to find                    explanations for the prevalent phenomenon of temporariness or                   lack of credibility.
{'FirstName': 'Wilfred', 'LastName': 'Ethier', 'EmailAddress': None, 'StartDate': '08/01/1988', 'EndDate': None, 'RoleCode': 'Principal Investigator'}
{'Name': 'University of Pennsylvania', 'CityName': 'Philadelphia', 'ZipCode': '191046205', 'PhoneNumber': '2158987293', 'StreetAddress': 'Research Services', 'CountryName': 'United States', 'StateName': 'Pennsylvania', 'StateCode': 'PA'}
{'Code': '1320', 'Text': 'ECONOMICS'}
{'url': 'https://www.nsf.gov/awardsearch/download?DownloadFileName=1988&All=true', 'xml': '8808992.xml'}