Benigno, Pierpaolo; Woodford, Michael - Banco Central de Chile - 2006
of government revenue exist, and fiscal policy can be relied upon to adjust so as to ensure intertemporal government … revenue; and also ones in which fiscal policy is purely exogenous, so that the central bank cannot rely upon fiscal policy to …). We find that the fiscal policy regime has important consequences for the optimal conduct of monetary policy, but that a …