The global effects of US fiscal policy

摘要: The author examines the global impact of U.S. fiscal policy using Bank Canada's Global Economy Model (Lalonde and Muir 2007). In particular, she macroeconomic implications expiration major tax cuts in United States expected increases entitlement program expenditures. results her analysis suggest that previously enacted will impose short-run costs on economy. However, rest world benefit from an associated decline real interest rate a redistribution wealth linked to partial reversal current account imbalances as government debt declines. author's increase expenditures, financed through debt, suggests expenditures crowd out economic growth world.