A perfect foresight OLG model is set up to study the dynamic response of a small open economy to a temporary fiscal impetus (bond-financed government deficit) anticipated to be closed by a mix of taxes, money finance and grant aid. The model is solved for the general mixed tax-money-aid finance...

A perfect foresight OLG model is set up to study the dynamic response of a small open economy to a temporary fiscal impetus (bond-financed government deficit) anticipated to be closed by a mix of taxes, money finance and grant aid. The model is solved for the general mixed tax-money-aid finance...