The paper introduces monetary and fiscal regimes into a Blanchard-Weil overlapping generations model. Contrary to intuition, it is shown that fiscal policy becomes more effective, the less the central bank monetises government debt. Furthermore, there is a degree of debt monetisation at which...

Understanding the changing role of central banks and their recent novel policies is essential for analysing many economic and financial issues, ranging from financial regulation and crisis, to exchange rate dynamics and regime changes, and QE and prolonged low interest rates. This book features...

"Understanding the changing role of central banks and the policies they pursue is absolutely essential for analysing a wide range of economic and political issues, from the Eurozone crisis right through to the US presidential election. This book features contributions by many of the world's...