Similar Search Results

On the Desirability of Fiscal Constraints in a Monetary Union

Chari, V.V. - 2004

The desirability of fiscal constraints in monetary unions depends critically on whether the monetary authority can commit to follow its policies. If it can commit, then debt constraints can only impose costs. If it cannot commit, then fiscal policy has a free-rider problem, and debt constraints...

Persistent link: https://www.econbiz.de/10012468461

Time Consistency and Free-Riding in a Monetary Union

Chari, V. V. - 2002

We analyze the setting of monetary and nonmonetary policies in monetary unions. We show that in these unions a time inconsistency problem in monetary policy leads to a novel type of free- rider problem in the setting of nonmonetary policies, such as labor market policy, fiscal policy, and bank...

Persistent link: https://www.econbiz.de/10012469333

Financial Markets and Fiscal Unions

Kehoe, Patrick J. - 2017

Do sophisticated international financial markets obviate the need for an active union-wide authority to orchestrate fiscal transfers between countries to provide adequate insurance against country-specific economic fluctuations? We argue that they do. Specifically, we show that in a benchmark...

Persistent link: https://www.econbiz.de/10012455446

Fiscal Federalism and Monetary Unions

Berriel, Rafael; Gonzalez-Aguado, Eugenia; Kehoe, Patrick J. - National Bureau of Economic Research - 2023

We apply ideas from fiscal federalism to reassess how fiscal authority should be delegated within a monetary union. In a real-economy model with no fiscal externalities, in which local fiscal authorities have an informational advantage about the preferences of their citizens for public spending...

Persistent link: https://www.econbiz.de/10014447274

New Keynesian models : not yet useful for policy analysis

Chari, Varadarajan V. (contributor); … - 2008

In the 1970s macroeconomists often disagreed bitterly. Macroeconomists have now largely converged on method, model design, and macroeconomic policy advice. The disagreements that remain all stem from the practical implementation of the methodology. Some macroeconomists think that New Keynesian...

Persistent link: https://www.econbiz.de/10003774553

Sales and the real effects of monetary policy

Kehoe, Patrick J. (contributor); … - 2007

In the data, a sizable fraction of price changes are temporary price reductions referred to as sales. Existing models include no role for sales. Hence, when confronted with data in which a large fraction of price changes are sales related, the models must either exclude sales from the data or...

Persistent link: https://www.econbiz.de/10003479621

Comparing alternative representations, methodologies, and decompositions in business cycle accounting

Chari, Varadarajan V. (contributor); … - 2006

Persistent link: https://www.econbiz.de/10003485980

If exchange rates are random walks then almost everything we say about monetary policy is wrong

Alvarez, Fernando (contributor); Atkeson, Andrew (contributor) - 2007

Persistent link: https://www.econbiz.de/10003486025

Sticky prices and sectoral real exchange rates

Kehoe, Patrick J. (contributor); … - 2007

theory for persistence have some modest support: in the data, the stickier is the price of a good the more persistent is its … real exchange rate, but the theory predicts much more variation in persistence than is in the data. The predictions of the … theory for volatiity fare less well: in the data, the stickier is the price of a good the smaller is its conditional variance …

Persistent link: https://www.econbiz.de/10003579972

Reply to Solow

Chari, Varadarajan V. (contributor); … - 2007

Persistent link: https://www.econbiz.de/10003580339