Aloi, Marta; Lloyd-Braga, Teresa; Whitta-Jacobsen, Hans … - Economic Policy Research Unit (EPRU), Økonomisk Institut - 2002
We study the effects of stylized fiscal policy rules on the (global) determinacy of rational expectations equilibrium in perfectly competitive monetary model with constant returns to scale and labor as the unique input. Government spending on transfers and/or demand implies a distortion of the...