Schmitt-Grohé, Stephanie; Uribe, Martín - Federal Reserve Bank of Atlanta - 2007
This paper computes welfare-maximizing monetary and fiscal policy rules in a real business cycle model augmented with … paper computes welfare-maximizing monetary and fiscal policy rules in a real business
cycle model augmented with sticky … rules in a calibrated model of the business cycle.
In the model economy, business cycles are driven by stochastic variations …