EconPapers    
Economics at your fingertips  
 

Monetary Policy and Fiscal Rules

Giancarlo Marini, Alessandro Piergallini and Barbara Annicchiarico (barbara.annicchiarico@uniroma3.it)

CEIS Research Paper from Tor Vergata University, CEIS

Abstract: This paper studies the performance of monetary policy under alternative fiscal regimes in a dynamic New Keynesian optimizing general equilibrium model with wealth effects. The interactions between fiscal policy and interest rate rules are shown to have relevant implications for the existence of a unique rational expectations equilibrium. When calibrated to Euro Area quarterly data, the model simulation results show that the preferred monetary-fiscal regime for inflation stabilization consists of a generalized Taylor rule with a low degree of inertia coupled with a public debt-GDP ratio targeting rule.

Keywords: Fiscal Policy Rules; Monetary Policy; Wealth Effects (search for similar items in EconPapers)
JEL-codes: E52 E58 E63 (search for similar items in EconPapers)
Pages: 37
Date: 2004-03-01
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://ceistorvergata.it/RePEc/rpaper/No-50-Annic ... rini_Piergallini.pdf (application/pdf)

Related works:
Journal Article: Monetary Policy and Fiscal Rules (2008) Downloads
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:rtv:ceisrp:50

Ordering information: This working paper can be ordered from
CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
https://ceistorvergata.it
segr.ceis@economia.uniroma2.it

Access Statistics for this paper

More papers in CEIS Research Paper from Tor Vergata University, CEIS CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma. Contact information at EDIRC.
Bibliographic data for series maintained by Barbara Piazzi (piazzi@ceis.uniroma2.it).

 
Page updated 2025-03-22
Handle: RePEc:rtv:ceisrp:50