"We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where monetary policy is optimal. We look at the extent to which different degrees of fiscal feedback enhance or detract from the ability of the monetary authorities to stabilize output...

The fiscal policy environment central banks operate in can be radically different with respect to debt levels, maturity structures and whether or not fiscal adjustments are spending or tax based. Despite this, most analyses of monetary policy delegation schemes typically ignore the behavior of...

We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where monetary policy is determined optimally, rather than following a simple rule. We look at the extent to which different degrees of fiscal feedback enhances or detracts from the...