Luk, Paul; Vines, David - C.E.P.R. Discussion Papers - 2015
under commitment. With a New Keynesian Phillips curve it is optimal to control inflation only through the use of monetary …This paper studies a simple New-Keynesian model of fiscal and monetary policy coordination when the policymaker acts … policy. But, when price-setters use a Steinsson (2003) Phillips curve, fiscal policy plays an active role, enabling a greater …