This paper studies price stability and debt sustainability when the real rate exceeds trend growth (r g) in a New Keynesian model with endogenous technology growth through R&D. Under debt-stabilizing ("passive") fiscal policy the Taylor principle is not sufficient for determinacy. Instead,...

Fiscal and monetary policy optimization has been the taskforce in many policymaking agendas ofinternational organizations, governments and alliances. However, attempts of the global community did not give the expected effect and rejected the anticipated targets. This article explores the main...

The paper analyses the way in which monetary and fiscal policy influences the performances of economic growth. The analysis is made on the basis of a dynamic model with discrete variables of the Sidrauski- Brock type, with infinite-lived households and money in the utility function. The model is...