Gomis-Porqueras, Pedro; Moslehi, Solmaz; Vilar, Vivianne - Department of Econometrics and Business Statistics, … - 2013
In this paper we explore how the nature of the equilibria changes when the interest income from nominal bond holdings is also taxed in an fully flexible endowment economy. We find that the stability properties of this economy depend on the slope and the intercept of both monetary and fiscal...