Seit dem vergangenen Jahr ist die Infl ation, die aufgrund der Intensivierung des Wettbewerbs durch die Globalisierung in der ökonomischen Diskussion als nahezu ausgestorben galt, wieder zurück. Es stellt sich die Frage, inwieweit die Modern Monetary Theory (MMT) einen substanziellen Beitrag...

This article discusses a form of fiscal monetization that produces losses in the central bank's balance sheet, without a permanent increase in the money base. If an independent central bank acts as a long-sighted policymaker, an optimal helicopter monetary policy can be identified. At the same...

Goods producers increase their capital expenditure and employment in response to a cut in marginal corporate income tax rates or an increase in investment tax credits. In contrast, companies in the service sector mostly use any tax windfall to increase dividend payouts. We base our conclusions...

We develop a new class of general equilibrium models with partially unfunded debt to propose a fiscal theory of trend inflation. In response to business cycle shocks, the monetary authority controls inflation, and the fiscal authority stabilizes debt. However, the central bank accommodates...

Current economic crisis in Serbia is not only a consequence of the last global economic crisis, but also a consequence of pre-crisis structural instabilities and uncompleted transition, both geopolitical and economic. Actually, ever since the transition in Serbia offi cially started in 1990, the...

When the zero lower bound on nominal interest rates binds, monetary policy cannot provide appropriate stimulus. We show that in the standard New Keynesian model, tax policy can deliver such stimulus at no cost and in a time-consistent manner. There is no need to use inefficient policies such as...

How should monetary and fiscal policy react to adverse financial shocks? If monetary policy is constrained by the zero lower bound on the nominal interest rate, subsidising the interest rate on loans is the optimal policy. The subsidies can mimic movements in the interest rate and can therefore...

When the zero lower bound on nominal interest rates binds, monetary policy cannot provide appropriate stimulus. We show that in the standard New Keynesian model, tax policy can deliver such stimulus at no cost and in a time-consistent manner. There is no need to use inefficient policies such as...

I am suggesting new methods, and innovative and alternative policies in the areas of optimal taxation, tax collection, money supply and banking financial system to help remove corruption, tax evasion, economic recession, black money, fake currency and societal inequalities. In my opinion, the...

The main purpose of this paper is to demonstrate that a single European currency project proves to be a failure. Although it was designed to limit the discretionary monetary policy of the national governments and to stimulate the economic exchanges within the European Union, the euro seems to be...