Monetary Policy Rules and the Effects of Fiscal Policy
Noritaka Kudoh and
Hong Thang Nguyen
No 220, Discussion paper series. A from Graduate School of Economics and Business Administration, Hokkaido University
Abstract:
We explore the implications of adopting a Taylor-type interest-rate rule in a simple monetary growth model in which budget deficits are financed partly by unbacked government debt. To ensure uniqueness of the steady-state equilibrium, monetary policy cannot be either too "active" or too "passive". The effects of fiscal policy depend crucially on whether monetary policy is active or passive, and are independent of the "tightness" of monetary policy.
Keywords: monetary policy rules; fiscal policy; overlapping generations; E52; E62; H62; H63 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2010-02
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://hdl.handle.net/2115/42609 (text/html)
https://eprints.lib.hokudai.ac.jp/dspace/bitstream/2115/42609/1/DPA220.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hok:dpaper:220
Access Statistics for this paper
More papers in Discussion paper series. A from Graduate School of Economics and Business Administration, Hokkaido University Contact information at EDIRC.
Bibliographic data for series maintained by Hokkaido University Library ().