Fiscal and monetary policies in complex evolving economies
Giovanni Dosi,Giorgio Fagiolo,Mauro Napoletano,Mauro Napoletano,Andrea Roventini,Andrea Roventini,Tania Treibich +6 more
TL;DR: This article used an agent-based model that is able to reproduce a wide array of macro- and micro-empirical regularities to find the most appropriate combination of fiscal and monetary policies in economies subject to banking crises and deep recessions.
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About: This article is published in Journal of Economic Dynamics and Control. The article was published on 01 Jan 2014. and is currently open access. The article focuses on the topics: Fiscal union & Fiscal policy.
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Figures
Table 8 Transaction flow matrix. 
Fig. 5. Fiscal rules. Confidence-interval bands are shown in a lighter colour and are computed as plus or minus twice MonteCarlo standard errors. 
Table 10 Sovereign bond interest rate experiments. Normalised average values of macroeconomic indicators for 100 simulation runs, considering as baseline the parametrisation rbonds ¼ r or rbonds ¼ 1:33nr with policies norule; TRπ . Absolute values of the simulation t-statistic of H0: “no difference with respect to the baseline experiment” in parentheses. 
Table 9 Sovereign bond interest rate experiments. Average values of macroeconomic indicators under the benchmark policy scenario (norule; TRπ) for 100 simulation runs. Absolute value of the simulation t-statistic of H0: “no difference between baseline (rbondsor) and the experiment” in parentheses. 
Fig. 1. Output, consumption and investment time series; left: logs; right: bandpass-filtered (6,32,12) series. 
Fig. 3. Distribution of banking crisis duration; simulated vs. empirical data. Frequency percentage on the vertical axis. The length of a banking crisis is defined as the number of consecutive periods with at least one banking failure in the country (Reinhart and Rogoff, 2009).
Citations
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Innovation, finance, and economic growth: an agent-based approach
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