In this paper, we investigate the properties of alternative monetary policy rules using four structural macroeconometric models: the Fuhrer-Moore model, Taylor's Multi-Country Model, the MSR model of Orphanides and Wieland, and the FRB staff model. All four models incorporate the assumptions of...

The inflation targeting policy, which is adopted in a lot of countries in recent years, has been introduced with a band target in most countries. However, in the many theoretical analysis, the target of the inflation rate is assumed to be a point, and the studies that have treated the following...

This paper investigates the stabilization bias that arises in a model of monetary and fiscal policy stabilization of the economy, when assuming that the monetary authority put higher weight on inflation stabilization than society. We demonstrate that inflation-conservatism unambiguously leads to...

We analyse the effectiveness of optimal simple and implementable monetary and fiscal policy rules in stabilising economic activity, inflation and government debt in face of an occasionally binding lower bound on the nominal interest rate in a New Keynesian model. We show that, within the...

This paper examines the role of a policymaker in macroeconomic outcomes. To determine the possible trade-offs posed by various policy targets, we link a well-known aggregate supply function with a policy rule. In our model we determine the conditions and explore the possibility under which a...

This study analyzes the effect of a money-financed policy for fiscal reform. We introduce a realistic setting in which real output is not given by an exogenous variable, but is determined by effective demand in a monetary growth model. Using this model, we compare the effects of the...

We investigate open economy dimensions of optimal monetary and fiscal policy at the zero lower bound (ZLB) in a small open economy model. At positive interest rates, the trade elasticity has negligible effects on optimal policy. In contrast, at the ZLB, the trade elasticity plays a key role in...

This paper develops the theoretical framework and studies discretionary non-cooperative monetary and fiscal policy stabilisation in a New Keynesian model, where the fiscal policymaker uses distortionary taxes as the policy instrument and operates with long periods between optimal adjustments of...

This paper presents a welfare analysis of a desirable Inflation Targeting Policy in order to achieve price stabilization and an efficient level of output under a deflationary economy. Concretely, we present a general model that can treat the components of a Inflation Targeting Policy, such as...

How to conduct macro-prudential regulation? How to coordinate monetary policy and macro-prudential policy? To address these questions, I develop a continuous-time New Keynesian economy in which a financial intermediary sector is subject to a leverage constraint. Coordination between monetary and...