Working paper icon

Working paper

Fiscal Sustainability in a New Keynesian Model.

Abstract:

Most recent work deriving optimal monetary policy utilising New Neo-Classical Synthesis (NNCS) models abstract from the impact of monetary policy on the government's finances, by assuming that any change in the government's budget can be financed through lump sum taxes. In this paper, we assume that the government does not have access to such taxes to satisfy its intertemporal budget constraint in the face of shocks. We then consider optimal monetary and fiscal policies under discretion and c...

Expand abstract

Actions


Access Document


Files:

Authors


Volume:
310
Series:
Discussion Papers
Publication date:
2007-01-01
URN:
uuid:bddaa5c1-e8b6-4c47-8a0f-c2d39f0b92e5
Local pid:
ora:1349
Language:
English

Terms of use


Metrics


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP