On the optimal mix of fiscal and monetary policy actions
AbstractWe study optimized monetary and fiscal feedback policy rules. The setup is a conventional New Keynesian DSGE model calibrated to match data from the euro area. Our aim is to welfare rank alternative tax-spending policy instruments used for shock stabilization and/or debt consolidation when, at the same time, the monetary authorities follow a Taylor rule for the interest rate.
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Bibliographic InfoPaper provided by Bank of Greece in its series Working Papers with number 150.
Date of creation: Dec 2012
Date of revision:
Feedback policy rules; New Keynesian;
Find related papers by JEL classification:
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- F3 - International Economics - - International Finance
- H6 - Public Economics - - National Budget, Deficit, and Debt
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