Leith, Campbell; Moldovan, Ioana; Rossi, Raffaele - Department of Economics, Adam Smith Business School - 2009
of goods to the public and private sectors. We then describe optimal monetary and fiscal policy in our New Keynesian … New Keynesian economy subject to the additional
externality of deep habits and explore the ability of simple (but …, Fiscal Policy, Deep Habits, New Keynesian.
1Introduction
Recent work looking at optimal monetary and fiscal policy in sticky …