Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/318151 
Erscheinungsjahr: 
2017
Schriftenreihe/Nr.: 
BCAM Working Paper No. 1708
Verlag: 
Birkbeck, University of London, Birkbeck Centre for Applied Macroeconomics (BCAM), London
Zusammenfassung: 
This paper studies optimal discretionary monetary policy and its interaction with fiscal policy in a New Keynesian model with finitely-lived consumers and gov- ernment debt. Optimal discretionary monetary policy involves debt stabilization to reduce consumption dispersion across cohorts of consumers. The welfare relevance of debt stabilization is proportional to the debt-to-output ratio and inversely related to the household's probability of survival that a¤ects the household's propensity to consume out financial wealth. Debt stabilization bias implies that discretionary optimal policy is suboptimal compared with the inflation targeting rule that fully stabilizes the output gap and the inflation rate while leaving debt to freely fluctuate in response to demand shocks.
Schlagwörter: 
Optimal monetary policy
fiscal and monetary policy interaction
JEL: 
E52
E63
URL der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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