Davig, Troy; Leeper, Eric M. - 2009
is passive when the central bank raises the nominal interest rate only weakly
in response to inflation and fiscal policy … primary
surpluses rise because passive fiscal policy raises taxes. Because the real interest rate
rises, a large and …
CAEPR Working Paper
#010-2009
MONETARY-FISCAL POLICY INTERACTIONS
AND FISCAL STIMULUS
TROY …