We propose an integrated treatment of the problems of optimal monetary and fiscal policy, for an economy in which … prices are sticky (so that the supply-side effects of tax changes are more complex than in standard fiscal analyses) and the … only available sources of government revenue are distorting taxes (so that the fiscal consequences of monetary policy must …

forward-looking macroeconomic model and simulates the effects of the announcement of a multistaged reduction in the fiscal …

Heterogeneity between unemployed and employed individuals matters for optimal fiscal policy. This paper considers the …

Both the OECD and the IMF periodically estimate and publish measures of fiscal impulse to gauge the extent to which … fiscal policy in the major industrial countries has become more or less expansive over time. This paper compares these … measures analytically and numerically. The paper shows that the OECD and IMF measures of fiscal impulse differ in at least four …

This paper reviews empirical evidence about the effects of changes in U.S. monetary policy and fiscal policy that has … foreign economic variables of a significant U.S. fiscal contraction. The quantitative implications of both alternative fiscal … suggest that a phased-in fiscal contraction could reduce the level of output for up to several years, as well as the levels of …

attempt to help fill this gap. The paper considers the quantitative importance of the coordination of fiscal and monetary …