Since Leeper's (1991, Journal of Monetary Economics 27, 129-147) seminal paper, an extensive literature has argued that if fiscal policy is passive, that is, guarantees public debt stabilization irrespectively of the inflation path, monetary policy can independently be committed to inflation...

Since Leeper's (1991, Journal of Monetary Economics 27, 129-147) seminal paper, an extensive literature has argued that if fiscal policy is passive, i.e., guarantees public debt stabilization irrespectively of the inflation path, monetary policy can independently be committed to inflation...

In this paper we study the effects of long-lasting fiscal measures on consumption, distinguishing between Keynesian effects (KE), due to changes in current disposable income, and non-Keynesian effects (NE), caused by expected changes in future disposable income. The literature has argued that...

The 1993 Income Policy Agreements (concertazione) reformed wage setting institutions in Italy. This change introduced a relevant ability in absorbing macroeconomic shocks and a curb in inflation- ary expectations, at the cost of stagnant aggregate real wages. The firm-level wage premia remained...

We consider a Kaldor-type discrete-time nonlinear business cycle model in income and capital, where investment is assumed to depend both on the difference between normal and current levels of capital stock, and on the difference between the current income and its normal level, through a...

This paper reviews Heinz D. Kurz's edited collection of Critical Essays on Piero Sraffa's Legacy in Economics. Besides providing an evaluation of the various contributions to the volume, the paper discusses some broad issues such as the notion of 'price' emerging from Sraffa's Production of...