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Fiscal and Monetary Stabilization Policy at the Zero Lower Bound : Consequences of Limited Foresight

Woodford, Michael - 2020

This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a relevant constraint on the effectiveness of conventional monetary policy, under an assumption of bounded rationality. In particular, we reconsider the potential role of...

Persistent link: https://www.econbiz.de/10012481376

Optimal Inflation Targeting under Alternative Fiscal Regimes

Benigno, Pierpaolo - 2006

Standard discussions of flexible inflation targeting as an optimal monetary policy abstract completely from the consequences of monetary policy for the government budget. But at least some of the countries now adopting inflation targeting have substantial difficulty in controlling fiscal...

Persistent link: https://www.econbiz.de/10012466536

Optimal Monetary and Fiscal Policy in a Liquidity Trap

Eggertsson, Gauti B. - 2004

In previous work (Eggertsson and Woodford, 2003), we characterized the optimal conduct of monetary policy when a real disturbance causes the natural rate of interest to be temporarily negative, so that the zero lower bound on nominal interest rates binds, and showed that commitment to a...

Persistent link: https://www.econbiz.de/10012467849

Optimal Monetary and Fiscal Policy : A Linear Quadratic Approach

Benigno, Pierpaolo - 2003

We propose an integrated treatment of the problems of optimal monetary and fiscal policy, for an economy in which prices are sticky and the only available sources of government revenue are distorting taxes. Our linear-quadratic approach allows us to nest both conventional analyses of optimal...

Persistent link: https://www.econbiz.de/10012468792

A Strategic Altruism Model In Which Ricardian Equivalence Does Not Hold

Kotlikoff, Laurence J. - 1988

consumption in altruistic settings, potential recipients can threaten to refuse as well as accept transfers. We apply the Extended … choose a threat point noncooperatively; this threat point then influences the final allocation of consumption through the … endowments and the equilibrium threats, and thus the final allocation of consumption. The feature of the cooperative model …

Persistent link: https://www.econbiz.de/10012476362

Consumption and Government-Budget Finance in a High-Deficit Economy

Leiderman, Leonardo - 1986

private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops … and estimates an intertemporal optimizing model of consumption choice by finite-lived individuals. The evidence supports …

Persistent link: https://www.econbiz.de/10012477038

Fiscal Policies and Real Exchange Rates in the World Economy

Frenkel, Jacob A. - 1986

This paper examines the effects of fiscal policies on the evolution of real rates of interest and real exchange rates in the interdependent world economy. We construct an analytical framework suitable for a detailed examination of the various channels through which these variables are influenced...

Persistent link: https://www.econbiz.de/10012477004

The International Transmission and Effects of Fiscal Policies

Frenkel, Jacob A. - 1986

the relation among the intercountry patterns of consumption, long and short-term real rates of interest, real exchange …

Persistent link: https://www.econbiz.de/10012477278

The International Transmission of Fiscal Expenditures and Budget Deficits in the World Economy

Frenkel, Jacob A. - 1984

This paper analyses the effects of fiscal policies on rates of interest and wealth in the world economy. Uncertainty concerning the length of life yields an equilibrium in which private and social rates of discount differ and budget deficits exert real effects. It is shown that a current budget...

Persistent link: https://www.econbiz.de/10012477559

Fiscal Policies, Debt, and International Economic Interdependence

Frenkel, Jacob A. - 1984

international transmission of fiscal policies.The dependence of the patterns of consumption in one country on fiscal policiesin the … immediate increase in foreign private sector's consumption and thereby results in a positive current transmission. These …

Persistent link: https://www.econbiz.de/10012477831