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Fiscal Policy In A Dynamic Open-Economy New-Keynesian Model

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  • Partha Sen

    (Delhi School of Economics)

Abstract

A two sector open economy model is set up in an uncertain lifetime’s framework. One of the sectors is monopolistically competitive. It is shown that the balanced budget fiscal expansion increases steady state welfare of the representative individual and also along the transition path.

Suggested Citation

  • Partha Sen, 1995. "Fiscal Policy In A Dynamic Open-Economy New-Keynesian Model," Working papers 30, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:30
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    References listed on IDEAS

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