Similar Search Results

Learning the fiscal theory of the price level: some consequences of debt management policy

Eusepi, Stefano; Preston, Bruce - Federal Reserve Bank of New York - 2011

This paper examines how the scale and composition of public debt can affect economies that implement a combination of “passive” monetary policy and “active” fiscal policy. This policy configuration is argued to be of both historical and contemporary interest in the cases of the U.S. and...

Persistent link: https://www.econbiz.de/10009320709

Fiscal foundations of inflation: imperfect knowledge

Eusepi, Stefano; Preston, Bruce - Federal Reserve Bank of New York - 2013

This paper proposes a theory of the fiscal foundations of inflation based on imperfect knowledge and learning. The … scale and composition of the public debt, matter for inflation. As a result, fiscal policy constrains the efficacy of … monetary policy to anchor inflation expectations. The model predicts that the Great Moderation period would not have been so …

Persistent link: https://www.econbiz.de/10010702291

Stabilizing expectations under monetary and fiscal policy coordination

Eusepi, Stefano; Preston, Bruce - Federal Reserve Bank of New York - 2008

This paper analyzes how the formation of expectations constrains monetary and fiscal policy design. Economic agents have imperfect knowledge about the economic environment and the policy regime in place. Households and firms learn about the policy regime using historical data. Regime uncertainty...

Persistent link: https://www.econbiz.de/10004994125

Labor supply heterogeneity and macroeconomic comovement

Eusepi, Stefano; Preston, Bruce - Federal Reserve Bank of New York - 2009

Standard real business cycle models must rely on total factor productivity (TFP) shocks to explain the observed …

Persistent link: https://www.econbiz.de/10008636173