Fountas, Stilianos - In: Journal of Economic Studies 21 (1994) 2, pp. 38-56
account and budget deficit objectives and time‐inconsistency arises due to lack of a sufficient number of policy instruments …. For this game I derive explicitly the time consistent and precommitment policies for the domestic fiscal authority and … explain that precommitment is welfare improving relative to the time‐consistent policy. In a two‐country framework, both …
