Horvath, Michal - Centre for Dynamic Macroeconomic Analysis, University … - 2008
instantaneously and lump-sum taxes are unavailable as a source of government finance. We then propose that monetar and fiscal policy … that
monetary and fiscal policy should be coordinated to satisfy a pair of
simple specific targeting rules, a rule for … economy
under optimal policy following a given shock.
JEL Classification: E52, E61, E63.
Keywords: Optimal Monetary and Fiscal …