Galí, Jordi; López-Salidoz, J. David; Vallés, Javier - Center for Financial Studies - 2004
of the monetary authority to in�ation, , to 1:5, a value commonly used in
empirical Taylor rules (and one that satis … spending.
JEL Classification: E32, E62
Keywords: Rule-of-Thumb Consumers, Fiscal Multiplier, Government Spending, Taylor …
Rules
1 Introduction
What are the e�ects of changes in government purchases of goods and services (hence-
forth …