Similar Search Results

Determinacy of Interest Rate Rules with Bond Transaction Services in a Cashless Economy

Marzo, Massimiliano; Zagaglia, Paolo - Nationalekonomiska institutionen, Stockholms Universitet - 2008

Canzoneri and Diba (2004) show that the Taylor principle is not a panacea for equilibrium determinacy in a model where bonds and money provide liquidity services to households. We consider a cashless variant of their model with two types of government bonds. One bond provides transaction...

Persistent link: https://www.econbiz.de/10005207069

When is monetary policy all we need?

Eser, Fabian; Leith, Campbell; Wren-Lewis, Simon - Department of Economics, Adam Smith Business School - 2009

We consider optimal monetary and fiscal policies in a New Keynesian model of a small open economy with sticky prices …

Persistent link: https://www.econbiz.de/10005012846

Monetary and fiscal policy under deep habits

Leith, Campbell; Moldovan, Ioana; Rossi, Raffaele - Department of Economics, Adam Smith Business School - 2009

to optimal monetary policy. We explore this consensus assignment in an economy subject to ‘deep’ habits at the level of … economy subject to the additional externality of deep habits and explore the ability of simple (but potentially nonlinear …

Persistent link: https://www.econbiz.de/10005103166

Fiscal Sustainability in a New Keynesian Model - Additional Appendix

Leith, Campbell; Wren-Lewis, Simon - Department of Economics, Adam Smith Business School - 2012

Recent work on optimal monetary and fiscal policy in New Keynesian models suggests that it is optimal to allow steady-state debt to follow a random walk. Leith and Wren-Lewis (2012) consider the nature of the timeinconsistency involved in such a policy and its implication for discretionary...

Persistent link: https://www.econbiz.de/10010896995

Compatibility Between Monetary and Fiscal Policy Under EMU

leith, Campbell; Wren-Lewis, Simon - Department of Economics, Adam Smith Business School

stability. In this paper, we relax the assumptions underpinning the FTPL by developing a two country open economy model, where …

Persistent link: https://www.econbiz.de/10005729948

Interactions Between Monetary and Fiscal Policy under Flexible Exchange Rates

Leith, Campbell; Wren-Lewis, Simon - Department of Economics, Adam Smith Business School

operating under flexible exchange rates has suggested that, in contrast to the closed economy FTPL, insolvent fiscal policy may … FTPL by developing a two country open economy model, where each country has overlapping generations of non … stabilise the debt of another fiscal authority, and there is no requirement that these policy makers operate in the same economy …

Persistent link: https://www.econbiz.de/10005729954

Electoral uncertainty and the deficit bias in a New Keynesian Economy

Leith, Campbell; Wren-Lewis, Simon - Department of Economics, Adam Smith Business School - 2008

Political Economy, has focused on real economies where there is strategic use of policy instruments in a world of political … conflict. In this paper we combine these literatures and assume that policy is set in a New Keynesian economy by one of two …/or composition). Given the environment, policy shall be realistically constrained to be time-consistent. In a sticky-price economy …

Persistent link: https://www.econbiz.de/10005729959

A Continuous-Time Model of the Term Structure of Interest Rates with Fiscal-Monetary Policy Interactions

Marzo, Massimiliano; Romagnoli, Silvia; Zagaglia, Paolo - Nationalekonomiska institutionen, Stockholms Universitet - 2008

We study the term structure implications of the fiscal theory of price level determination. We introduce the intertemporal budget constraint of the government in a general equilibrium model in continuous time. Fiscal policy is set according to a simple rule whereby taxes react proportionally to...

Persistent link: https://www.econbiz.de/10005207072

The Global Dimension to Fiscal Sustainability

Byrne, Joseph P.; Fiess, Norbert; MacDonald, Ronald - Department of Economics, Adam Smith Business School - 2008

This paper examines the issue of fiscal sustainability in emerging market countries and industrial countries. We highlight the importance of the time series properties of the primary surplus and debt, and find evidence of a positive long run relationship. Consequently we emphasise, that...

Persistent link: https://www.econbiz.de/10005811778

Fiscal Implications of Aids in South Africa

Johansson, Lars - Nationalekonomiska institutionen, Stockholms Universitet - 2006

The number of people living with HIV is alarmingly large. In addition to the incomprehensible human suffering of those directly affected, AIDS also has large, negative economic effects. In this paper, I study the fiscal implications of the HIV/AIDS epidemic in South Africa in a standard...

Persistent link: https://www.econbiz.de/10005419557