Chafwehé, Boris; Oikonomou, Rigas; Priftis, Romanos; … - 2019
authority solves an optimal policy problem under commitment at the zero-lower bound. FG derives from two sources: 1. from … additively to the standard Taylor rule. In the case where optimal policy reflects debt sustainability concerns (satisfies the … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and …