: How do the Maastricht convergence criteria modify an optimal monetary and fiscal policy mix in an economy facing domestic … and external shocks? We find that targets of the unconstrained optimal monetary and fiscal policy are similar to those of … monetary and fiscal policy violates three Maastricht criteria: on the CPI inflation rate, the nominal interest rate and deficit …

economy under optimal policy following a given shock. JEL Classification: E52, E61, E63. Keywords: Optimal Monetary and Fiscal … Policy, Timeless Perspective, Nominal Rigidity, Simple Targeting Rules. 1. Introduction In this paper, we propose simple …

and Fiscal Policy, Non-Separable Preferences, Non-Ricardian Agents. 1. Introduction We model an economy in which both … .timelessly optimal policy. JEL Classification: E21, E52, E61, E63. Keywords: Consumption, Government Spending, Optimal Monetary …

final consumption baskets. We define the optimal monetary and fiscal policy and contrast the (small) contribution of …

: Consumption, Government Spending, Optimal Monetary and Fiscal Policy, Non-Separable Preferences, Non-Ricardian Agents. 1 … Michigan. [3] Benigno, P. and M. Woodford, 2003, Optimal Monetary and Fiscal Policy: A Linear-Quadratic Approach, in: Gertler …

This paper characterizes conditions under which optimal monetary and fiscal policy is time consistent in a stylized …