Journal article

Controlling inflation with timid monetary-fiscal regime changes

Abstract:: Can monetary policy control inflation when both monetary and fiscal policies change over time? When monetary policy is active, a long-run fiscal principle entails flexibility in fiscal policy that preserves determinacy even when deviating from passive fiscal, substantially for brief periods or timidly for prolonged periods. In order to guarantee a unique equilibrium, monetary and fiscal policies must coordinate not only within but also across regimes, and not simply on being active or passive, but also on their extent. The amplitude of deviations from the active monetary/passive fiscal benchmark determines whether a regime is Ricardian: Timid deviations do not imply wealth effects.

Publication status:: Published

Peer review status:: Peer reviewed

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APA Style

Ascari, G., Florio, A., & Gobbi, A. (2020). Controlling inflation with timid monetary-fiscal regime changes. International Economic Review, 61(2), 1001–1024.

MLA Style

Ascari, G, et al. “Controlling Inflation with Timid Monetary-Fiscal Regime Changes.” International Economic Review, vol. 61, no. 2, 2020, pp. 1001–24.

Chicago Style

Ascari, G, A Florio, and A Gobbi. 2020. “Controlling Inflation with Timid Monetary-Fiscal Regime Changes.” International Economic Review 61 (2): 1001–24.
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Files:: appendix.pdf

(Preview, Supplementary materials, pdf, 888.4KB, Terms of use)

Ascari_et_al_2020_Controlling_inflation_with_timid--.pdf

(Preview, Accepted manuscript, pdf, 729.7KB, Terms of use)

Publisher copy:: 10.1111/iere.12447

Authors

+ Ascari, G More by this author

Institution:: University of Oxford
Division:: SSD
Department:: Economics
Oxford college:: Somerville College
Role:: Author
ORCID:: 0000-0002-5037-1964

+ Florio, A More by this author

Role:: Author

+ Gobbi, A More by this author

Role:: Author

Publisher:: Wiley
Journal:: International Economic Review More from this journal
Volume:: 61
Issue:: 2
Pages:: 1001-1024
Publication date:: 2020-03-09
Acceptance date:: 2019-11-08
DOI:: 10.1111/iere.12447
EISSN:: 1468-2354
ISSN:: 0020-6598

Language:: English
Keywords:: FFR
Pubs id:: pubs:1076088
UUID:: uuid:a5b1f87c-2da0-4a55-8d3f-4cce1414ae21
Local pid:: pubs:1076088
Source identifiers:: 1076088
Deposit date:: 2019-12-03
ARK identifier:: ark:/29072/ora_a5b1f87c2da04a558d3f4cce1414ae21

Terms of use

Copyright holder:: Economics Department of the University of Pennsylvania and the Osaka University Institute of Socialand Economic Research Association
Copyright date:: 2020
Rights statement:: © 2020 by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Socialand Economic Research Association.
Notes:: This is the accepted manuscript version of the article. The final version is available online from Wiley at https://doi.org/10.1111/iere.12447

Licence:: Terms and Conditions of Use for Oxford University Research Archive

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