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Time-consistent management of a liquidity trap with government debt

Matveev, Dmitry - 2018

This paper studies optimal discretionary monetary and fiscal policy when the lower bound on nominal interest rates is occasionally binding in a model with nominal rigidities and long-term government debt. At the lower bound it is optimal for the government to temporarily reduce debt. This...

Persistent link: https://www.econbiz.de/10011881785

Monetary policy and government debt dynamics without commitment

Matveev, Dmitry - 2019

I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that...

Persistent link: https://www.econbiz.de/10012137085

The central bank strikes back! : credibility of monetary policy under fiscal influence

Camous, Antoine; Matveev, Dmitry - 2022 - Last updated: March 4, 2022

monetary-fiscal interactions where the central bank has a limited degree of commitment to follow policies over time and the … fiscal authority has none. We contrast the implications of two monetary frameworks: one where the central bank follows a … importantly, the additional fiscal conditionality can enhance the credibility of the central bank to achieve price stability. We …

Persistent link: https://www.econbiz.de/10012886819