Title of article :
On thejointdeterminationoffiscalandmonetarypolicy
Author/Authors :
Fernando M. Martin، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2011
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
Journal title :
Journal of Monetary Economics
