Schmitt-Grohé, Stephanie; Uribe, Martín - 2006
to be a central goal of optimal monetary policy. The optimal rate of inflation under an income tax regime is half a … frictions that in isolation would call for a volatile rate of inflation—particularly nonstate-contingent nominal public debt, no …In this paper, we study Ramsey-optimal fiscal and monetary policy in a mediumscale model of the U.S. business cycle …