2026.09.16
News
Research Paper Co-Authored by Associate Professor Chikafumi Nakamura of the Faculty of Policy Studies Published in Review of International Economics
A research paper co-authored by Associate Professor Chikafumi Nakamura of the Faculty of Policy Studies, titled "Does Openness Amplify Money-Financed Fiscal Stimulus? A Fiscal Theory Perspective," has been published in Review of International Economics, a peer-reviewed academic journal specializing in international economics.
The study, conducted jointly with Eiji Okano of Nagoya City University, theoretically examines how the effectiveness of "money-financed fiscal policy," in which government spending is financed by money creation, varies with the degree of economic openness.
The analysis shows that the effects of such a policy do not necessarily increase as an economy becomes more open. Rather, they differ significantly depending on the fiscal and monetary policy framework in place and on whether the zero lower bound on interest rates is binding.
These findings offer a new perspective on the interaction between fiscal and monetary policies in open economies.
