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This paper studies fiscal--monetary policy interactions in an endogenous growth model with multiple assets. Under an interest-rate rule, there are two Pareto-ranked balanced growth equilibria. The E-stability principle is used to pin down an equilibrium. Interestingly, expectational...
Persistent link: https://www.econbiz.de/10013154924
The paper presents the fiscal theory of the price level in a variety of models, including endowment economies with lump …-sum taxes and production economies with proportional income taxes. We offer a microeconomic perspective on the fiscal theory by … level. Under certain assumptions on monetary and fiscal behavior, the revaluation effect reflects the fiscal theory …
Persistent link: https://www.econbiz.de/10012784238
The paper presents the fiscal theory of the price level in a variety of models, including endowment economies with lump …-sum taxes and production economies with proportional income taxes. We offer a microeconomic perspective on the fiscal theory by … level. Under certain assumptions on monetary and fiscal behavior, the revaluation effect reflects the fiscal theory …
Persistent link: https://www.econbiz.de/10012467030
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Persistent link: https://www.econbiz.de/10011708534
From the New York Times bestselling author of This Time Is Different, “a fascinating and important book” (Ben Bernanke) about the surprising reasons why paper money lies at the heart of many of the world’s most difficult problemsThe world is drowning in cash—and it’s making us poorer...
Persistent link: https://www.econbiz.de/10014481634
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Corruption among central banks induces distorted policies by, first, increasing the inflation bias and, second … bankers with similar preferences, corruption might be tolerated as an instrument of bringing factual policies more in line …
Persistent link: https://www.econbiz.de/10009424461