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Buiter, Willem H. 1949-

Works: 298 works in 1,754 publications in 1 language and 10,130 library holdings
Genres: Conference papers and proceedings 
Roles: Author, Editor, Thesis advisor, Other
Classifications: HG3942, 337
Publication Timeline
Publications about Willem H Buiter
Publications by Willem H Buiter
Most widely held works by Willem H Buiter
International economic policy coordination by Willem H Buiter( Book )
21 editions published between 1984 and 1986 in English and held by 522 libraries worldwide
Interpreting the ERM crisis : country-specific and systemic issues by Willem H Buiter( Book )
31 editions published between 1996 and 1998 in English and held by 471 libraries worldwide
This study interprets key aspects of the ERM crisis and presents a model of an integrated EU economy?including both country-specific macroeconomic conditions and global shocks?that focuses on the systemic forces linking the revision of market expectations and the asymmetric policy responses as different dimensions of the same equilibrium outcome. It analyzes the implications of changes in the degree and modalities of policy coordination on the equilibrium exchange-rate parities in Europe and shows how the traditional theory of currency crises can be generalized in a multicountry framework, in which the "fundamentals" are augmented so as to include the rules regulating coordination (or competition) among policymakers
Principles of budgetary and financial policy by Willem H Buiter( Book )
19 editions published between 1989 and 2004 in English and held by 465 libraries worldwide
Financial markets and European monetary cooperation : the lessons of the 1992-93 exchange rate mechanism crisis by Willem H Buiter( Book )
26 editions published between 1997 and 2010 in English and held by 389 libraries worldwide
The authors first sketch the history of monetary cooperation in Europe from Bretton Woods to Maastricht. A step-by-step account of the 1992-93 events follows, including a discussion of the extent to which financial markets anticipated the crisis. A survey of the recent literature on the subject introduces the authors' center-periphery model of currency crisis. The authors argue that the vulnerability of Europe to financial crisis was - and still is - the result of the lack of concern with the systemic dimensions of monetary policy-making, both in terms of the international spillovers of domestic policies and the strategic interaction among monetary authorities
Macroeconomic theory and stabilization policy by Willem H Buiter( Book )
18 editions published between 1989 and 1992 in English and held by 358 libraries worldwide
International macroeconomics by Willem H Buiter( Book )
17 editions published between 1990 and 1991 in English and held by 339 libraries worldwide
Budgetary policy, international and intertemporal trade in the global economy by Willem H Buiter( Book )
12 editions published between 1989 and 1991 in English and held by 244 libraries worldwide
The fallacy of the fiscal theory of the price level, again by Willem H Buiter( Book )
13 editions published between 2000 and 2001 in English and held by 131 libraries worldwide
The Fiscal Theory of the Price Level (FTPL) rejects the fundamental 'Ricardian' proposition, that the government budget constraint must hold identically, that is for all admissible values of the variables entering the budget constraint. Accordingly, if the government is to meet its contractual debt obligations, one of its instruments must be determinded residually to ensure the budget constraint is satisfied. If the government overdetermines its fiscal-financial-monetary policy programme, contractual debt obligations will not be met. The FTPL asserts that even when the government overdetermines its policy programme, contractual debt obligations will always be met. The general price level plays the role of a default premium or discount. The paper shows that the FTPL is a fallacy and leads to anomalies and contradictions
Capital mobility, fiscal policy and growth under self-financing of human capital formation by Willem H Buiter( Book )
27 editions published in 1995 in English and held by 117 libraries worldwide
This paper considers the effects of fiscal and financial policy on economic growth in open and closed economies, when human capital formation by young households is constrained by the illiquidity of human wealth. Both endogenous and exogenous growth versions of the basic OLG model are analyzed. We find that intergenerational redistribution policies that discourage physical capital formation may encourage human capital formation. Despite common technologies and perfect international mobility of financial capital, the non- tradedness of human capital and the illiquidity of human wealth make for persistent differences in productivity growth rates (in the endogenous growth version of the model) or in their levels (in the exogenous growth version). We also consider the productivity growth (or level) effects of public spending on education and of the distortionary taxation of financial asset income
Liquidity traps : how to avoid them and how to escape them by Willem H Buiter( Book )
34 editions published between 1999 and 2000 in English and held by 113 libraries worldwide
The paper considers ways of avoiding a liquidity trap and ways of getting out of one. Unless lower short nominal interest rates are associated with significantly lower interest volatility, a lower average rate of inflation, which will be associated with lower expected nominal interest rates, increases the odds that the zero nominal interest rate floor will become a binding constraint. The empirical evidence on this issue is mixed. Once in a liquidity trap, there are two means of escape. The first is to use expansionary fiscal policy. The second is to lower the zero nominal interest rate floor. This second option involves paying negative interest on government 'bearer bonds' -- coin and currency, that is 'taxing money', as advocated by Gesell. This would also reduce the likelihood of ending up in a liquidity trap. Taxing currency amounts to having periodic 'currency reforms', that is, compulsory conversions of 'old' currency into 'new' currency, say by stamping currency. The terms of the conversion can be set to achieve any positive or negative interest rate on currency. There are likely to be significant shoe leather costs associated with such schemes. The policy question then becomes how much shoe leather it takes to fill an output gap? Finally the paper develops a simple analytical model showing how the economy can get into a liquidity trap and how Gesell money is one way of avoiding it or escaping from it
Transition issues for the European monetary union by Willem H Buiter( Book )
24 editions published in 1997 in English and held by 109 libraries worldwide
If Stage Three of EMU starts on January 1, 1999, transition issues remain on two time scales. Until July 1, 2002, national currencies and the euro co-exist as legal tender. We argue that intra-EMU currency risk exists in principle during that period, but that no EMU member can be forced out through speculative attacks. Cohabitation of Ins and Outs has an open-ended time scale. We discuss the effect of EMU on incentives for both Ins and Outs to undertake structural reform and the coordination problems associated with the distribution of seigniorage revenue and the Stability and Growth Pact
Generational accounts, aggregate saving and intergenerational distribution by Willem H Buiter( Book )
24 editions published between 1995 and 1996 in English and Undetermined and held by 109 libraries worldwide
This paper asks and answers two questions. First: what do generational accounts tell us about the way the government budget affects intergenerational distribution? Second: what do generational accounts (augmented with generation-specific propensities to consume out of life-time resources) tell us about the effect of the budget on saving?
Notes on "A code for fiscal stability" by Willem H Buiter( Book )
19 editions published between 1998 and 2000 in English and held by 104 libraries worldwide
This note comments on two central issues for fiscal policy design in the UK, highlighted in the recent Code for Fiscal Stability' proposed by the new Labour government. The first concerns the merits of the so-called golden rule of public sector investment' -- the proposition that, over the cycle, government borrowing should not exceed government capital formation. The second concerns the case for attempting to construct a more comprehensive balance sheet of public sector assets and liabilities, including tangible public sector assets and certain contingent claims. The two main conclusions are that the golden rule is without merit but that, subject to some important caveats, the construction of a more comprehensive government balance sheet is a worthwhile enterprise
The young person's guide to neutrality, price level indeterminacy, interest rate pegs, and fiscal theories of the price level by Willem H Buiter( Book )
20 editions published in 1998 in English and held by 104 libraries worldwide
The paper establishes the following: First, money is neutral even if there is a non-zero stock of non-monetary nominal public debt, because the government adjusts real taxes to satisfy its intertemporal budget constraint. Second, Woodford's fiscal theory of the price level, according to which for certain fiscal rules the (initial) price level is independent of the nominal money stock, is invalid. It combines an overdetermined fiscal-financial program with an unwarranted weakening of the government's intertemporal budget constraint, requiring it to hold only in equilibrium, and only for arbitrarily restricted configurations of public spending, taxes and initial debt stocks. Third, there is price level determinacy under an exogenous nominal interest rate rule if the transactions technology has cash-in-advance features. The price level is hysteretic in this case. Finally, it is not possible to draw inferences about the historical process of technological improvements in the transactions technology leading to a cashless economy, by studying the limiting behavior, as a transactions efficiency index takes on successively higher values of a sequence of histories, each one of which is indexed for all time by a given level of efficiency
The fallacy of the fiscal theory of the price level by Willem H Buiter( Book )
26 editions published between 1999 and 2017 in English and held by 102 libraries worldwide
It is not common for an entire scholarly literature to be based on a fallacy, that is, 'on faulty reasoning; misleading or unsound argument'. The 'fiscal theory of the price level', recently re-developed by Woodford, Cochrane, Sims and others, is an example of a fatally flawed research programme. The source of the fallacy is an economic misspecification. The proponents of the fiscal theory of the price level do not accept the fundamental proposition that the government's intertemporal budget constraint is a constraint on the government's instruments that must be satisfied for all admissible values of the economy-wide endogenous variables. Instead they require it to be satisfied only in equilibrium. This economic misspecification has implications for the mathematical or logical properties of the equilibria supported by models purporting to demonstrate the properties of the fiscal approach. These include: overdetermined (internally inconsistent) equilibria; anomalies like the apparent ability to price things that do not exist; the need for arbitrary restrictions on the exogenous and predetermined variables in the government's budget constraint; and anomalous behaviour of the equilibrium' price sequences, including behaviour that will ultimately violate physical resource constraints. The issue is of more than academic interest. Policy conclusions could be drawn from the fiscal theory of the price level that would be harmful if they influenced the actual behaviour of the fiscal and monetary authorities. The fiscal theory of the price level implies that a government could exogenously fix its real spending, revenue and seigniorage plans, and that the general price level would adjust the real value of its contractual nominal debt obligations so as to ensure government solvency. When reality dawns, the result could be painful fiscal tightening, government default, or unplanned recourse to the inflation tax
A center-periphery model of monetary coordination and exchange rate crises by Willem H Buiter( Book )
18 editions published in 1995 in English and held by 102 libraries worldwide
Abstract: The paper analyzes the modalities and consequences of a breakdown of cooperation between the monetary authorities of inflation-prone Periphery Countries that use an exchange rate peg as an anti- inflationary device, when the Center is hit by an aggregate demand shock. Cooperation in the Periphery is constrained to be symmetric: costs and benefits must be equal for all. Our model suggests that there are at least two ways in which a generalized crisis of the exchange rate system may emerge. The first is when the constrained cooperative response of the Periphery is a moderate common devaluation while the non-cooperative equilibrium has large devaluations by a few countries. An exchange rate crisis emerges if Periphery countries give in to their individual incentives to renege on the cooperative agreement. In the second case, the Center shock is not large enough to trigger a general devaluation in the constrained cooperative equilibrium; yet some of the Periphery countries would devalue in the Nash equilibrium, making the monetary stance in the system more expansionary. In this case, reversion to Nash is collectively rational. We offer this model as a useful parable for interpreting the collapse of the EMR in 1992-93
A portfolio approach to a cross-sectoral and cross-national investment strategy in transition economies by Willem H Buiter( Book )
19 editions published in 1997 in English and held by 100 libraries worldwide
This paper takes a systematic look at the portfolio choice problem faced by Investment Banks or Funds investing in transition economies. We relate the performance of projects in the transition economies to the broader macroeconomic and international environment, which affect the project through its input-output structure and its financial balance sheet. Among the macroeconomic determinants of enterprise behavior we consider are productivity growth, real wage growth, movements in the international terms of trade, shocks to the relative price of traded and non-traded goods, domestic and foreign interest rates, currency depreciation and the rate of inflation. We evaluate the attractiveness of alternative investment strategies and provisioning rules from the perspective of portfolio theory
Temporary equilibrium and long-run equilibrium by Willem H Buiter( Book )
18 editions published between 1975 and 2015 in English and held by 94 libraries worldwide
This title, first published in 1979, presents the Ph. D. thesis of the world-renowned economist and financial expert, Willem Buiter. In Part I, three alternative specifications of temporary equilibria in asset markets, including their implications for macroeconomic models, are discussed; Part II examines the long-term implications of some short-term macroeconomic models. The analysis of the theoretical foundations of 'direct crowding out' and 'indirect crowding out' is particularly prominent, with the result that a synthesis of short-term macroeconomic analysis and long-term growth theory is
Deflationary bubbles by Willem H Buiter( Book )
23 editions published between 2004 and 2006 in English and held by 75 libraries worldwide
We analyse deflationary bubbles in a model where money is the only financial asset. We show that such bubbles are consistent with the household's transversality condition if and only if the nominal money stock is falling. Our results are in sharp contrast to those in several prominent contributions to the literature, where deflationary bubbles are ruled out by appealing to a non-standard transversality condition, originally due to Brock. This condition, which we dub the GABOR condition, states that the consumer must be indifferent between reducing his money holdings by one unit and leaving them unchanged and enjoying the discounted present value of the marginal utility of that unit of money forever. We show that the GABOR condition is not part of the necessary and sufficient conditions for household optimality nor is it sufficient to rule out deflationary bubbles. Moreover, it rules out Friedman's optimal quantity of money equilibrium and, when the nominal money stock is falling, it rules out deflationary bubbles that are consistent with household optimality. We also consider economies with real and nominal government debt and small open economies where private agents can lend to and borrow from abroad. In these cases, deflationary bubbles may be possible, even when the nominal money stock is rising. Their existence is shown to depend on the rules governing the issuance of government debt
Cross-border tax externalities : are budget deficits too small? by Willem H Buiter( Book )
17 editions published between 2003 and 2004 in English and held by 72 libraries worldwide
In a dynamic optimising model with costly tax collection, a tax cut by one nation creates positive externalities for the rest of the world if initial public debt stocks are positive. By reducing tax collection costs, current tax cuts boost the resources available for current private consumption, lowering the global interest rate. This pecuniary externality benefits other countries because it reduces the tax collection costs for foreign governments of current and future debt service. In the non-cooperative equilibrium, nationalistic governments do not allow for the effect of lower domestic taxes on debt service costs abroad. Taxes are too high and government budget deficits too low compared to the global cooperative equilibrium. Even in the cooperative equilibrium complete tax smoothing is not optimal: current taxes will be lower than future taxes
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Associated Subjects
Balance of trade--Mathematical models Budget Capital budget--Mathematical models Competition, International--Mathematical models Consumption (Economics)--Mathematical models Crowding out (Economics) Debts, Public Debts, Public--Econometric models Debts, Public--Mathematical models Deflation (Finance) Distribution (Economic theory)--Mathematical models Economic history Economic policy Economic stabilization Equilibrium (Economics) Europe, Eastern European Monetary System (Organization) Europe--European Union countries Finance, Public--Accounting--Mathematical models Fiscal policy Fiscal policy--Econometric models Fiscal policy--Mathematical models Foreign exchange--Mathematical models Foreign exchange rates Foreign exchange rates--Government policy--Mathematical models Foreign exchange rates--Mathematical models Government spending policy--Econometric models Great Britain Human capital Interest rates--Econometric models Interest rates--Mathematical models International economic relations International finance International trade--Mathematical models Investments, Foreign Macroeconomics Macroeconomics--Mathematical models Monetary policy Monetary policy--Econometric models Monetary policy--International cooperation Monetary policy--Mathematical models Monetary unions Money Prices--Econometric models Prices--Mathematical models Public investments--Mathematical models Saving and investment--Mathematical models Soviet Union--Former Soviet republics Taxation--Econometric models Theory of constraints (Management)
Alternative Names
Buiter, W. 1949-
Buiter, W.H., 1949-
Buiter, W. (Willem H.), 1949-
Buiter, Willem.
Buiter, Willem 1949-
Buiter, Willem H.
Buiter, Willem H. 1949-
Buiter, Willem Hendrik
Buiter, Willem Hendrik 1949-
Willem Buiter ahli ékonomi Amérika-Inggris katurunan Walanda
Willem Buiter Dutch economist
Willem Buiter economista neerlandés
Willem Buiter économiste néerlandais
Willem Buiter Nederlands econoom
Willem Buiter nederländsk ekonom
Willem Buiter nederlandsk økonom
English (425)
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