Kirsanova, Tatiana; Roux, Stephanus le - In: International Journal of Central Banking 9 (2013) 4, pp. 99-152
This paper investigates the conduct of monetary and fiscal policy in the post-ERM period in the United Kingdom. Using a simple DSGE New Keynesian model of non-cooperative monetary and fiscal policy interactions under fiscal intraperiod leadership, we demonstrate that the past policy in the...