We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where monetary policy is optimal. We look at the extent to which different degrees of fiscal feedback enhances or detracts from the ability of the monetary authorities to stabilise output...

We consider optimal monetary and fiscal policies in a New Keynesian model of a small open economy with sticky prices and wages.  In this benchmark setting monetary policy is all we need - analytical results demonstrate that variations in government spending should play no role in the...

We consider optimal monetary and fiscal policies in a New Keynesian model of a small open economy with sticky prices and wages. In this benchmark setting monetary policy is all we need - analytical results demonstrate that variations in government spending should play no role in the...

We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where monetary policy is optimal. We look at the extent to which different degrees of fiscal feedback enhances or detracts from the ability of the monetary authorities to stabilise output...

Fiscal councils now exist in a number of countries.  This paper first considers the extent of deficit bias, potential explanations for it, and how independent institutions could help reduce it.  Are fiscal councils complements to or substitutes for fiscal rules, and why do none at  present...

We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where monetary policy is optimal. We look at the extent to which different degrees of fiscal feedback enhances or detracts from the ability of the monetary authorities to stabilise output...