Simple Monetary Rules under Fiscal Dominance
نویسندگان
چکیده
منابع مشابه
Simple Monetary Rules Under Fiscal Dominance
This paper asks whether an aggressive monetary policy response to inflation is feasible in countries that suffer from fiscal dominance, as long as monetary policy also responds to fiscal variables. We find that if nominal interest rates are allowed to respond to government debt, even aggressive rules that satisfy the Taylor principle can produce unique equilibria. But following such rules resul...
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In this paper, we dealt with fiscal dominance, which is a situation in which the fiscal authority sets its expenditure and taxes without regard to any requirement of intertemporal budget balance. Therefore, the monetary authority must adjust its policies to ensure that the government budget is in balance. The existence of oil revenues for the government on the one hand and its lack of access to...
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ژورنال
عنوان ژورنال: Journal of Money, Credit and Banking
سال: 2010
ISSN: 0022-2879,1538-4616
DOI: 10.1111/j.1538-4616.2009.00278.x