Nonlinear and Uncertainty Effects of Macroeconomics Policies

The aim of the present project is to study the nonlinear effects of monetary and fiscal policy by using a simple extension of standard VAR methods. In particular, we shall focus on four key policy issues: (1) Are the effects of monetary policy asymmetric? (2) Is the fiscal stimulus more effective during economic downturns? (3) Do monetary and fiscal shocks interact in some way? (4) Does macroeconomic policy uncertainty, and in particular fiscal policy uncertainty, affect economic activity?

PI: Mario Forni, Università degli Studi di Modena e Reggio Emilia

Other Research Unit:

• Università degli Studi di Torino - Coordinator: Luca Gambetti