The Department of Economics Macroeconomics Seminar series presents

"Fiscal Unions"
with Emmanuel Farhi, Professor of Economics, Harvard University

Wednesday, October 17, 2012
3:30-5:00 p.m.
Social Science Plaza B, Room 3266 (Econ Library)

Farhi will present solutions for government spending multipliers during a liquidity trap and within a fixed exchange regime using standard closed and open-economy models. His work confirms the potential for large multipliers during liquidity traps. For a currency union, he shows that self-financed multipliers are small, always below unity. However, outside transfers or windfalls can generate larger responses in output, whether or not they are spent by the government. His solutions are relevant for local and national multipliers, providing insight into the economic mechanisms atwork as well as the testable implications of these models.

For further information, please contact Gloria Simpson, or 949-824-5788.

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