Optimal Fiscal and Monetary Policy: Some Recent Results
نویسندگان
چکیده
Our framework combines features of two distinguished traditions in economics: a public finance tradition and a more recent tradition of business cycle theory. The public finance tradition we follow stems from Ramsey (1927), who considers the problem of choosing an optimal tax structure when only distorting taxes are available. The business cycle tradition we follow stems from Kydland and Prescott (1982) and Long and Plosser (1983), who, along with others in this tradition, analyze the quantitative role of shocks to technology and govemment consumption
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