In this paper, we evaluate the consequences of super-active fiscal policy rules - that is, rules that call for tax cuts and/or spending increases as the government's debt level rises - in a standard New Keynesian model subject to an occasionally-binding zero lower bound on the monetary policy...

Continuos credibility effects are incorporated into a simple model of optimal monetary policy. The resulting model provides explanations for a number of "folk theorems" about credibility in monetary policy. A central bank with low initial credibility pursues a more restrictive policy than a...

In light of the current low-interest-rate environment, we reconsider the merit of a money growth target (MGT) relative to a conventional in ation targeting (IT) regime, and to the notion of price level targeting (PLT). Through the lens of a New Keynesian model, and accounting for a zero lower...