Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Ramsey Optimal Policy versus Multiple Equilibria with Fiscal and Monetary Interactions

Abstract : The reference model of frictionless endowment economies includes a Fisher relation for the real interest rate and government intertemporal budget constraint. For this model, Ramsey optimal policy mix is a unique equilibrium with an interest rate peg and a "passive" fiscal rule with a negative-feedback value of its parameter stabilizing public debt. This is a third equilibrium with respect to the two usual equilibria with ad hoc policy rules. The first one has passive fiscal policy and an active monetary policy rule parameter destabilizing in.ation. The second one has an active fiscal policy rule parameter destabilizing public debt and a passive monetary policy which includes the case of an interest rate peg. :
Complete list of metadatas

Cited literature [16 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-02278791
Contributor : Caroline Bauer <>
Submitted on : Wednesday, September 4, 2019 - 4:04:03 PM
Last modification on : Friday, February 28, 2020 - 3:01:41 PM
Document(s) archivé(s) le : Thursday, February 6, 2020 - 7:26:55 AM

File

wp1948_.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-02278791, version 1

Collections

Citation

Jean-Bernard Chatelain, Kirsten Ralf. Ramsey Optimal Policy versus Multiple Equilibria with Fiscal and Monetary Interactions. 2019. ⟨halshs-02278791v1⟩

Share

Metrics

Record views

149

Files downloads

352