Monetary and fiscal policy interactions in a New Keynesian model with capital accumulation and non-Ricardian consumers

• 成果类型: Article
• 署名作者: Leith, Campbell; von Thadden, Leopold
• 署名单位: University of Glasgow; European Central Bank
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2007.07.005
• 发表日期: 2008
• 页码: 279-313
• 关键词: Monetary policy; Fiscal regimes

摘要

The paper examines 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 bifurcations associated with threshold values of steady-state debt, leading to qualitative changes in the local determinacy requirements. (c) 2007 Elsevier Inc. All rights reserved.