Dynamic Simulation of Fiscal Consolidation: Do Rapid Adjustments Become Self-Defeating?

Fiscal sustainability when public debt is high: The role of portfolio liquidity

This paper studies how the prevailing level of public debt shapes the transmission of fiscal and monetary policy shocks in a tractable heterogeneous three-agent New Keynesian model. When households rely on the liquidity services of government bonds to self-insure against idiosyncratic risk, higher public indebtedness a...

A DSGE Simulation of Investment Behaviour of U.S. Public Companies under Federal Reserve Rate Hike Shocks: A Refined Draft

: This paper refines and completes the original draft by clarifying the internal structure of the model, filling in several previously missing equilibrium conditions, and laying out a more transparent and reproducible simulation plan. The study constructs a three-sector DSGE framework consisting of representative house...

Examining the Complex Role of Fiscal and Monetary Policy Shocks in Shaping Exchange Rate Dynamics: A Case Study of Pakistan's Currency Behavior

This study departs from conventional literature by using quarterly data instead of annual data, enabling a more detailed exploration of short-term and long-term exchange rate fluctuations. It introduces an innovative analysis of the asymmetric effects of fiscal and monetary shocks on the Real Effective Exchange Rate (R...

The Impact of Public Debt on Economic Growth: An Analysis of the Mediating Role of Inflation in Kenya

Kenya’s escalating public debt presents a dualistic impact on economic stability. This study analyzes the debt-growth relationship from 2000 to 2024 using an integrated econometric framework comprising Autoregressive Distributed Lag (ARDL), Vector Error Correction (VECM), and Structural Equation Modeling (SEM). The ana...

The Efficiency of Fiscal Consolidation Under Structural Shocks: An Empirical Analysis of Ukraine

The article examines the efficiency of fiscal stimulus in Ukraine under structural shocks during 2018–2026. The relevance of the study is determined by the fact that, in periods of severe macroeconomic instability, actual budget indicators do not provide a sufficient basis for assessing the true stance of fiscal policy...

Fiscal adjustment under aging and uncertainty: evidence from the United States