Fiscal Policies in the World Economy
用两国一般均衡模型分析预算赤字和政府支出对世界利率、消费和国际债务的影响，区分财政支出与减税、当前政策与预期未来政策的效果，并讨论福利含义。
This paper uses a two-country general equilibrium model of the world economy in order to analyze the effects of budget deficits and government spending on world rates of interest, consumption, and international indebtedness. It demonstrates the difference between the effects of fiscal expenditures and tax cuts as well as between the effects of current policies and expected future policies. It is shown that the qualitative effects of fiscal policies depend on whether the country introducing the policies runs a surplus or a deficit in its current account. Following the positive analysis of the short-run and the steady-state effects, the paper concludes with a normative analysis of the welfare implications of budget deficits.