Monetary Policy, Neutrality and the Environment
نویسندگان
چکیده
We study the interaction between monetary and fiscal policies in a Ramsey-Sidrauski model augmented with environmental capital. Equilibrium solutions are studied through “Green Golden Rule”. Despite non-separability of money utility intertemporally non-separable preferences, is environmentally neutral. Policy impacts environment via marginal rate transformation rather than substitution consumption environment. Fiscal policies, lump sum distortionary, under balanced budget, also non-neutral. Only non-balanced when deficits monetized, In alternative approaches (Cash-in-Advance, Transactions Costs), JEL Classification: E52, E62, H23
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3894145