Optimal monetary and fiscal policies in a search theoretic model of monetary exchange

Optimal Monetary and Fiscal Policies in a Search Theoretic Model of Monetary Exchange∗

Search models of monetary exchange commonly assume that terms of trade in decentralized markets are determined via Nash bargaining. Bargaining frictions add to the classical intertemporal distortion present in most monetary models, whereby agents work today to obtain cash that can be used only in future transactions. More important, bargaining frictions may cause underproduction in decentralize...

Quantitative Determination Of Optimal Fiscal And Monetary Policies: A Stochastic Optimal Control Analysis For Iran

Optimal Growth Using Fiscal and Monetary Policies

Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut Internationa...

Optimality Of Monetary And Fiscal Policies In Iran: An Application Of The Stochastic Optimal Control Theory

Effects of Fiscal and Monetary Policies on the Iranian Economy: An Optimal Control Approach

This paper evaluates the interacted effects of the fiscal and monetary policies on the nominal and real macro-variables of the Iranian economy. Our analysis is thus based on the optimal control theory by which the optimal path of the control variables including monetary and fiscal tools are determined over the period 1963-2006. We also use a macro-econometric model in form of a simultaneous equ...