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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

Monetary and fiscal policy interaction and government debt stabilization

Bovenberg, A.L.Bovenberg; van Aarle, B.; Raith, M. - Tilburg University, Center for Economic Research - 1995

In many developing and developed countries, government debt stabilization is an important policy issue. This paper models the strategic interaction between the monetary authorities who control monetization and the fiscal authorities who control primary fiscal deficits. Government debt dynamics...

Persistent link: https://www.econbiz.de/10011092845

Designing fiscal and monetary institutions in a second-best world

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

features of an economy, such as money holdings, outstanding public debt, labor-market distortions, society s preferences, and …

Persistent link: https://www.econbiz.de/10011090885

The interaction of fiscal and monetary policy in a monetary union : Balancing credibility and flexibility

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

This paper explores how decentralized, national fiscal policies interact with a common monetary policy in a monetary union. We show that fiscal policy plays a more important ro le in stabilizing country-specific shocks than with national monetary policies. Whereas monetary u nification with an...

Persistent link: https://www.econbiz.de/10011090899

Designing fiscal and monetary institutions for a European Monetary Union

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

This paper explores under what conditions a European Monetary Union (EMU) is an optimum currency area. The scope for an EMU increases with convergence of structural and fiscal policies, small money holdings, a conservative European Central Bank, and dependent national central banks. How national...

Persistent link: https://www.econbiz.de/10011092176

Monetary union without fiscal coordination may discipline policymakers

Bovenberg, A.L.Bovenberg; Beetsma, R.M.W.J. - Tilburg University, Center for Economic Research - 1995

We show that, with benevolent policymakers and fiscal leadership, monetary unification reduces inflation, taxes and public spending. These disciplining effects of a monetary union, which rise with the number of fiscal players in the union, are likely to raise welfare. Joining an optimally...

Persistent link: https://www.econbiz.de/10011092286

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