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Monetary Policy and Fiscal Stimulus with the Zero Lower Bound and Financial Frictions
Merola, Rossana - 2013
Recent developments in many industrialized countries have triggered a debate on whether monetary policy is effective when the nominal interest rate is close to zero. When the nominal interest rate hits its lower bound, the monetary authority is no longer in a position to pursue a policy of...
Persistent link: https://www.econbiz.de/10013089396
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Optimal Monetary and Fiscal Policy at the Zero Lower Bound in a Small Open Economy
Bhattarai, Saroj - 2017
We investigate open economy dimensions of optimal monetary and fiscal policy at the zero lower bound (ZLB) in a small open economy model. At positive interest rates, the trade elasticity has negligible effects on optimal policy. In contrast, at the ZLB, the trade elasticity plays a key role in...
Persistent link: https://www.econbiz.de/10012970178
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Generalizing Determinacy under Monetary and Fiscal Policy Switches : The Case of the Zero Lower Bound
Cho, Seonghoon - 2020
In a fixed-regime setting, it is known since Leeper (1991) that both monetary dominance (mix of active monetary and passive fiscal policies) and fiscal dominance (mix of active fiscal and passive monetary policy) regimes yield a determinate unique equilibrium. This paper shows that in a...
Persistent link: https://www.econbiz.de/10012847919
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Optimal robust monetary and fiscal policy under uncertainty on the lower bound
Özcan, Gülserim; Traficante, Guido - In: Journal of macroeconomics 81 (2024), pp. 1-21
Persistent link: https://www.econbiz.de/10015064426
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Policy risk and the business cycle
Born, Benjamin; Pfeifer, Johannes - 2013 - This version: July 11, 2013, First Version: December 2010
The argument that policy risk, i.e., uncertainty about monetary and fiscal policy, has been holding back the economic … recovery in the U.S. during the Great Recession has a large popular appeal. We analyze the role of policy risk in explaining … business cycle fluctuations by using an estimated New Keynesian model featuring policy risk as well as uncertainty about …
Persistent link: https://www.econbiz.de/10009772961
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Policy risk and the business cycle
Born, Benjamin; Peifer, Johannes - 2011 - This version: June 1, 2011
The argument that policy risk, i.e. uncertainty about monetary and fiscal policy, has been holding back the economic … recovery in the U.S. during the Great Recession has a large popular appeal. We analyze the role of policy risk in explaining … business cycle fluctuations by using an estimated New Keynesian model featuring policy risk as well as uncertainty about …
Persistent link: https://www.econbiz.de/10009126071
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Uncertainty and fiscal policy in an asymmetric monetary union
Hefeker, Carsten; Zimmer, Blandine - 2009
We examine monetary and fiscal interactions in a monetary union model with uncertainty due to imperfect central bank transparency. It is first shown that monetary uncertainty discourages excessive taxation and may thus reduce average inflation and output distortions. However, as countries enter...
Persistent link: https://www.econbiz.de/10003852211
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Uncertainty and fiscal policy in an asymmetric monetary union
Hefeker, Carsten (contributor); Zimmer, Blandine (contributor) - 2008
The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes, average inflation and output distortions. However, as more...
Persistent link: https://www.econbiz.de/10003749682
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Uncertainty and Fiscal Policy in an Asymmetric Monetary Union
Hefeker, Carsten - 2013
The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes, average inflation and output distortions. However, as more...
Persistent link: https://www.econbiz.de/10012753473
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Independent Central Banks and the interplay between monetary and fiscal policy
Orphanides, Athanasios - 2017
, may be in the long-term interest of a country. Validating default fears and high risk premia on government debt can be a …
Persistent link: https://www.econbiz.de/10011942211