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Monetary-Fiscal Policy Interactions under Implementable Monetary Policy Rules

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  • WILLIAM A. BRANCH
  • TROY DAVIG
  • BRUCE McGOUGH

Abstract

This paper examines the implications of forward- and backward-looking monetary policy rules in an environment with monetary-fiscal interactions. We find that the unique stationary rational expectations equilibrium (REE) is always non-Ricardian under simple implementable monetary policy rules. Copyright (c) 2008 The Ohio State University.

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Bibliographic Info

Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 40 (2008)
Issue (Month): 5 (08)
Pages: 1095-1102

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Handle: RePEc:mcb:jmoncb:v:40:y:2008:i:5:p:1095-1102

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879

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Cited by:
  1. Libich, Jan & Nguyen, Dat & Stehlik, Petr, 2014. "Monetary Exit and Fiscal Spillovers," MPRA Paper 57266, University Library of Munich, Germany.
  2. Anna Florio & Alessandro Gobbi, 2014. "Learning the Fiscal Monetary Interaction under Trend Infl?ation," DEM Working Papers Series 068, University of Pavia, Department of Economics and Management.
  3. Danciulescu, Cristina, 2014. "Macroeconomic equilibrium and welfare under simple monetary and switching fiscal policy rules," Economic Modelling, Elsevier, vol. 36(C), pages 58-68.
  4. Jan Libich & Dat Thanh Nguyen & Petr StehlĂ­k, 2011. "Monetary Exit Strategy and Fiscal Spillovers," CAMA Working Papers 2011-04, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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