TY  - UNPD
A1  - Angeloni, Ignazio
A1  - Faia, Ester
A1  - Winkler, Roland
T1  - Exit strategies
T2  - SAFE working paper series ; No. 50
N2  - We study alternative scenarios for exiting the post-crisis fiscal and monetary accommodation using a macromodel where banks choose their capital structure and are subject to runs. Under a Taylor rule, the post-crisis interest rate hits the zero lower bound (ZLB) and remains there for several years. In that condition, pre-announced and fast fiscal consolidations dominate - based on output and inflation performance and bank stability - alternative strategies incorporating various degrees of gradualism and surprise. We also examine an alternative monetary strategy in which the interest rate does not reach the ZLB; the benefits from fiscal consolidation persist, but are more nuanced.
T3  - SAFE working paper - 50 
KW  - exit strategies
KW  - debt consolidation
KW  - …fiscal policy
KW  - …fiscal multipliers
KW  - monetary policy
KW  - bank runs
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/34178
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-341788
UR  - http://ssrn.com/abstract=2437326
N1  - First draft: August 2010. This draft: April 2014.
IS  - This draft: April 2014
PB  - SAFE
CY  - Frankfurt am Main
ER  -