| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP7741
|
| DP7741 Distortionary fiscal policy and monetary policy goals |
| Klaus Adam; Roberto M Billi
|
| 发表日期 | 2010-03-14
|
| 出版年 | 2010
|
| 语种 | 英语
|
| 摘要 | We study interactions between monetary policy, which sets nominal interest rates, and fiscal policy, which levies distortionary income taxes to finance public goods, in a standard, sticky-price economy with monopolistic competition. Policymakers' inability to commit in advance to future policies gives rise to excessive inflation and excessive public spending, resulting in welfare losses equivalent to several percent of consumption each period. We show how appointing a conservative monetary authority, which dislikes inflation more than society does, can considerably reduce these welfare losse and that optimally the monetary authority is predominatly concerned about inflation. Full conservatism, i.e., exclusive concern about inflation, entirely eliminates the welfare losses from discretionary monetary and fiscal policymaking, provided monetary policy is determined after fiscal policy each period. Full conservatism, however, is severely suboptimal when monetary policy is determined simultaneously with fiscal policy or before fiscal policy each period. |
| 主题 | International Macroeconomics
|
| 关键词 | Discretion
Nash and stackelberg equilibria
Policy biases
Sequential non-cooperative policy games
|
| URL | https://cepr.org/publications/dp7741
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/536577
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推荐引用方式
GB/T 7714 |
Klaus Adam,Roberto M Billi. DP7741 Distortionary fiscal policy and monetary policy goals. 2010.
|
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