Chari, V.V.; Kehoe, Patrick J. - In: Handbook of macroeconomics : volume 1, part C, (pp. 1671-1745). 1999
We provide an introduction to optimal fiscal and monetary policy using the primal approach to optimal taxation. We use this approach to address how fiscal and monetary policy should be set over the long run and over the business cycle. We find four substantive lessons for policymaking: Capital...
