Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19649
Full metadata record
DC FieldValueLanguage
dc.contributor.authorLeith, Campbellen_US
dc.contributor.authorvon Thadden, Leopolden_US
dc.date.accessioned2009-01-28T16:01:43Z-
dc.date.available2009-01-28T16:01:43Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/19649-
dc.description.abstractThis paper develops a small New Keynesian model with capital accumulation andgovernment debt dynamics. The paper discusses the design of simple monetary and fiscalpolicy rules consistent with determinate equilibrium dynamics in the absence of Ricardianequivalence. Under this assumption, government debt turns into a relevant state variablewhich needs to be accounted for in the analysis of equilibrium dynamics. The key analyticalfinding is that without explicit reference to the level of government debt it is not possible toinfer how strongly the monetary and fiscal instruments should be used to ensure determinateequilibrium dynamics. Specifically, we identify in our model discontinuities associated withthreshold values of steady-state debt, leading to qualitative changes in the local determinacyrequirements. These features extend the logic of Leeper (1991) to an environment in whichfiscal policy is non-neutral. Naturally, this non-neutrality increases the importance of fiscalaspects for the design of policy rules consistent with determinate dynamics.en_US
dc.language.isoengen_US
dc.publisher|aDeutsche Bundesbank |cFrankfurt a. M.-
dc.relation.ispartofseries|aDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank |x2006,21en_US
dc.subject.jelE63en_US
dc.subject.jelE52en_US
dc.subject.ddc330en_US
dc.subject.keywordMonetary policyen_US
dc.subject.keywordFiscal regimesen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwRegelgebundene Politiken_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwRicardianisches Äquivalenztheoremen_US
dc.subject.stwTheorieen_US
dc.titleMonetary and fiscal policy interactions in a New Keynesian model with capital accumulation and non-Ricardian consumersen_US
dc.typeWorking Paperen_US
dc.identifier.ppn514274093en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:4472-

Files in This Item:
File
Size
536.08 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.