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Designing fiscal and monetary institutions in a second-best world
Beetsma,R.M.W.J. Bovenberg,A.L.
Beetsma,R.M.W.J.
Bovenberg,A.L.
Abstract
This paper explores how fiscal and monetary policy interact if commitment and access to lump-sum taxation are limited. We analyze how equilibrium outcomes for inflation, employment, and public spending are affected by the structural features of an economy, such as money holdings, outstanding public debt, labor-market distortions, society s preferences, and the nature of the policy game. In a normative vein, we compare society s welfare across various institutional settings and investigate how society should optimally adjust the preferences of policymakers.
Description
Pagination: 41
Date
1995
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Publisher
Unknown Publisher
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47.pdf
Adobe PDF, 294.79 KB
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Keywords
Central Banks, Monetary Policy, Fiscal Policy, Independence, monetary economics, E62 - Fiscal Policy ; Modern Monetary Theory, E52 - Monetary Policy, SDG 17 - Partnerships for the Goals
Citation
Beetsma, R M W J & Bovenberg, A L 1995 'Designing fiscal and monetary institutions in a second-best world' CentER Discussion Paper, vol. 1995-47, Unknown Publisher.