[PDF] Top 20 Optimal fiscal and monetary policy, debt crisis, and management

... on monetary-fiscal interactions, Schmitt-Grohe and Uribe (2004a) and Schmitt-Grohe and Uribe (2007) exploit their own contribution to the computation of the solution of non-linear DSGE models in ... See full document

... government debt will not be solely undone by future tax ...fiscal policy in a liquidity trap between stimulating the economy and stabilizing government ...fiscal policy while the zero lower bound is ... See full document

... the optimal policy regime is at odds with conventional wisdom about the desirability of price ...the optimal degree of inflation ...government debt, it is no longer the case that the ... See full document

... and debt claims has no real ...Issuing debt, for instance, can help constrain managers in their self-interested use of free cash flow (though there may be other better-targeted incentive structures to ... See full document

... ‘public debt as a proportion of GDP will be held over the economic cycle at a stable and prudent level’ (HM Treasury, ...1994 Fiscal Responsibility Act stipulates that once prudent levels of public ... See full document

... Optimal debt management in our model in section 2 differs significantly from that in other incomplete markets models ...of debt and taxes is unique. In the long run, debt and tax rates ... See full document

... the fiscal regime focuses on testing the responsiveness of the primary balance to changes in different variables (Bohn, ...public debt ratio and other control variables to verify the significance of this ... See full document

... Several assumptions are crucial to obtain the time consistent result when productivity is constant. (a) Real interest rates are assumed to be exogenous. This assumption guarantees that there is no real time inconsistency ... See full document

... for monetary control and for public debt management have become more sophisticated), a different institutional structure might be better suited to achieve monetary policy and ... See full document

... a monetary policy that stabilizes in‡ation also achieves a zero output gap in the absence of cost-push shocks, as shown in Woodford ...and debt stabilization. To gain an understanding on the ... See full document

... effects, optimal pol- icy decreases taxation leading to a higher levels of public ...under optimal policy follows a staggering adjustment to a positive level in the subsequent ... See full document

... ment debt and models with flexible prices (such as Chari et ...state-contingent debt (like the model considered by Correia et ...of optimal policy in a real economy without state-contingent ... See full document

... dramatic policy response to the 2008-2009 global economic crisis followed by many coun- tries has revived some old debates about the use of …scal and monetary policy in …ghting ...for ... See full document

... timal fiscal policy under incomplete markets: governments try to smooth taxes, taxes show near- martingale behavior and debt is used as a buffer stock to spread tax increases over all periods after ... See full document

... two policy strategies do not originate from the extent of interest rate smoothing, that is a sluggish adjustment of real interest ...the monetary policy ...of policy changes when public ... See full document

... study optimal fiscal policy in a monetary union where monetary policy is decided by an independent central ...is optimal to finance a shock in part by running deficits and ... See full document

... a monetary union would be vulnerable to asymmetric ...using fiscal policy in a countercyclical ...that fiscal policy could be effective in this role (see Hughes Hallett and Vines ... See full document

... It shows that there exists a wedge between the marginal utility of (private) consumption and the disutility of labor that depends on the steady state interest payments x. e 8 The wedge thereby consists of two components: ... See full document

... I model a frictionless economy in which no cash is held overnight. The economy need not be ‘‘cashless;’’ transactions may be facilitated by money ᎏ claims to just-maturing government bonds ᎏ created each morning and ... See full document

... India, debt management is currently carried out by the RBI’s Internal Debt Management Department (IDMD), which is functionally separate from monetary ...The debt ... See full document