This paper develops a model of policy regime uncertainty and its consequences for stabilizing expectations. Because of … learning dynamics, uncertainty about monetary and fiscal policy is shown to restrict, relative to a rational expectations … analysis, the set of policies consistent with macroeconomic stability. Anchoring expectations by communicating about monetary …

inflation in order to stabilize the expectations of households, firms and innovators. Endogenous growth provides a self …

liabilities differ, rebalancing the maturity structure changes the government cost of capital. In the fiscal theory, changes in …