Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/318154 
Erscheinungsjahr: 
2019
Schriftenreihe/Nr.: 
BCAM Working Paper No. 1901
Verlag: 
Birkbeck, University of London, Birkbeck Centre for Applied Macroeconomics (BCAM), London
Zusammenfassung: 
We revisit Uribe's[32]'fiscal theory of sovereign risk,' which suggests a trade-off between stabilizing inflation and suppressing default. Unlike Uribe[32], we develop a class of dynamic stochastic general equilibrium models in which the fiscal surplus is endogenous, but where the default mechanism follows Uribe[32] with nominal rigidities. We find that an optimal monetary and fiscal policy, in which both the nominal interest rate and the tax rate are policy instruments, not only stabilizes inflation and the output gap, but also default through stabilizing the fiscal surplus. Thus, there is not necessarily a trade-off between stabilizing inflation and suppressing default.
Schlagwörter: 
Sovereign Risk
Optimal Monetary Policy
Fiscal Theory of the Price Level
JEL: 
E52
E60
URL der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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