Fiscal hedging with nominal assets

• 成果类型: Article
• 署名作者: Lustig, Hanno; Sleet, Christopher; Yeltekin, Sevin
• 署名单位: Carnegie Mellon University; University of California System; University of California Los Angeles
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2008.05.012
• 发表日期: 2008
• 页码: 710-727
• 关键词: Optimal fiscal and monetary policy; fiscal hedging

摘要

We analyze optimal fiscal and monetary policy in an economy with distortionary labor incorne taxes, nominal rigidities, nominal debt of various maturities and short-selling constraints. Optimal policy prescribes the almost exclusive use of long term debt. Such debt mitigates the distortions associated with hedging fiscal shocks by allowing the government to allocate them efficiently across states and periods. (c) 2008 Elsevier B.V. All rights reserved.