Title of article
On thejointdeterminationoffiscalandmonetarypolicy
Author/Authors
Fernando M. Martin، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
14
From page
132
To page
145
Abstract
The conductoffiscalandmonetarypolicyabsentcommitmentdependsonthe
interactionbetweentheobjectiveofsmoothingdistortionsintertemporallyanda
time-consistencyproblem.Whennetnominalgovernmentobligationsarepositive,
both fiscalandmonetarypoliciesaredistortionaryandthechoiceofdebtdependson
how theanticipatedresponseinfuturemonetarypolicyaffectsthecurrentdemandfor
moneyandbonds.Thereexistsauniquesteadystatewithpositivenetnominal
governmentobligations,whichisstableandtime-consistent.Foranyinitiallevelof
debt,thewelfarelossduetolackofcommitmentissmall
Journal title
Journal of Monetary Economics
Serial Year
2011
Journal title
Journal of Monetary Economics
Record number
846460
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