Fiscal Policy, Public Debt and the Term Structure of Interest Rates (Lecture Notes in Economics and Mathematical Systems, 476) Год выпуска: 0Автор: Roland DemmelИздательство: Страниц: 0ISBN: 354066243XОписание The book discusses the dynamic interactions between fiscal policy and financial markets in a setting of stochastic growth and general equilibrium. In so doing, two important strands of literature are integrated: macroeconomic dynamics and mathematical finance. This enables to develop the dynamics of important financial market variables completely within the model thus freeing the analyst from arbitrarily assuming them. Moreover, it becomes possible to analyze the influence of fiscal policy on interest rate dynamics explicitly. The effect of the interest rate dynamics on the evolution of growth and the feedback effects between public debt and interest rate dynamics are also examined in a detailed way.
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