Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/19649 
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dc.contributor.authorLeith, Campbellen
dc.contributor.authorvon Thadden, Leopolden
dc.date.accessioned2009-01-28T16:01:43Z-
dc.date.available2009-01-28T16:01:43Z-
dc.date.issued2006-
dc.identifier.urihttp://hdl.handle.net/10419/19649-
dc.description.abstractThis paper develops a small New Keynesian model with capital accumulation and government debt dynamics. The paper discusses the design of simple monetary and fiscal policy rules consistent with determinate equilibrium dynamics in the absence of Ricardian equivalence. Under this assumption, government debt turns into a relevant state variable which needs to be accounted for in the analysis of equilibrium dynamics. The key analytical finding is that without explicit reference to the level of government debt it is not possible to infer how strongly the monetary and fiscal instruments should be used to ensure determinate equilibrium dynamics. Specifically, we identify in our model discontinuities associated with threshold values of steady-state debt, leading to qualitative changes in the local determinacy requirements. These features extend the logic of Leeper (1991) to an environment in which fiscal policy is non-neutral. Naturally, this non-neutrality increases the importance of fiscal aspects for the design of policy rules consistent with determinate dynamics.en
dc.language.isoengen
dc.publisher|aDeutsche Bundesbank |cFrankfurt a. M.en
dc.relation.ispartofseries|aDiscussion Paper Series 1 |x2006,21en
dc.subject.jelE63en
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordMonetary policyen
dc.subject.keywordFiscal regimesen
dc.subject.stwGeldpolitiken
dc.subject.stwFinanzpolitiken
dc.subject.stwRegelgebundene Politiken
dc.subject.stwUngleichgewichtstheorieen
dc.subject.stwDynamisches Gleichgewichten
dc.subject.stwRicardianisches Äquivalenztheoremen
dc.subject.stwTheorieen
dc.titleMonetary and fiscal policy interactions in a New Keynesian model with capital accumulation and non-Ricardian consumers-
dc.typeWorking Paperen
dc.identifier.ppn514274093en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:bubdp1:4472en

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