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A simple stochastic equilibrium structure is used to study the implications of monetary and fiscal policy interactions for government intertemporal budget balance. Existence and uniqueness of monetary equilibria are shown to depend on parameters of policy rules. The paper derives closed form...
Persistent link: https://www.econbiz.de/10005498780
exogenous disturbances and private agents' behaviour - into a distribution for the maximum sustainable debt-to-GDP ratio …
Persistent link: https://www.econbiz.de/10009783106
Persistent link: https://www.econbiz.de/10012603187
Persistent link: https://www.econbiz.de/10014284271
exogenous disturbances and private agents' behaviour - into a distribution for the maximum sustainable debt-to-GDP ratio …
Persistent link: https://www.econbiz.de/10010319662
The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax- or spending-based - are uncertain. We find that the composition of the fiscal consolidation, its duration, the monetary policy stance, the level of government debt, and...
Persistent link: https://www.econbiz.de/10010319687
A growing body of evidence finds that policy reaction functions vary substantially over different periods in the United States. This paper explores how moving to an environment in which monetary and fiscal regimes evolve according to a Markov process can change the impacts of policy shocks. In...
Persistent link: https://www.econbiz.de/10005410818
Persistent link: https://www.econbiz.de/10005712020
According to conventional wisdom, if deficits are inflationary then current deficits should predict subsequent movements in money growth. This paper USES a general equilibrium model fit to data to: (1) explore the policy behavior underlying this accepted viewpoint; (2) examine alternative...
Persistent link: https://www.econbiz.de/10005712657
Persistent link: https://www.econbiz.de/10003878024