Template-Type: ReDIF-Paper 1.0

Author-Name: Chiara Punzo
Author-X-Name-First: Chiara
Author-X-Name-Last: Punzo
Author-Name: Giulia Rivolta
Author-X-Name-First: Giulia
Author-X-Name-Last: Rivolta
Author-Email: giulia.rivolta@unicatt.it
Author-Workplace-Name: Università Cattolica del Sacro Cuore
Author-Workplace-Name: Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore






Title: Money versus debt …financed regime: Evidence from an estimated DSGE model.


Abstract: We estimate a money-…nancing versus debt-…nancing medium-scale dynamic stochastic general equilibrium for the US with Borrower-Saver framework. Our results suggest that the share of net borrowers in a MF regime
(17%) is lower than the one in a DF regime (19%). The MF regime enhances the positive e¤ects of …scal and risk premium shocks with respect to the DF
regime. After an in‡ationary shock the MF regime leads to a mild recession while the DF regime leads to a temporary expansion followed by a sharp recession.
The …scal shock mainly explains the variance in output and borrower’s consumption in a MF regime. The variance of the saver’s consumption remains
mainly linked to the risk premium shock in both regimes. In a DF regime, the wage mark-up shock plays the major role. 
Length: 36
Creation-Date: 2022-11
File-URL: http://dipartimenti.unicatt.it/economia-finanza-def120.pdf
File-Format: Application/pdf
File-Function: First version, 2022
Number: def120
Classification-JEL: E32; E42; E52. 
Keywords: Borrowers-Savers; Bayesian Estimation; Monetary Policy.
Handle: RePEc:ctc:serie1:def120