Chari, V.V.; Kehoe, Patrick J. - Federal Reserve Bank of Minneapolis - 2003
fiscal policy has a free-rider problem, and debt constraints may be desirable. This type of free-rider problem is new and … policies. If it can commit, then debt constraints can only impose
costs. If it cannot commit, then fiscal policy has a free … that a time inconsistency problem in monetary
policy leads to a free-rider problem in fiscal policy. The time inconsistency …