Interest Rate Cuts versus Stimulus Payments: An Equivalence Result

• 成果类型: Article
• 署名作者: Wolf, Christian K.
• 署名单位: Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/734096
• 发表日期: 2025
• 页码: 1235-1275
• 关键词: monetary-policy; business cycles; public debt; INVESTMENT; deficits; wage

摘要

I derive a general condition on consumer behavior ensuring that, in a standard model of demand-determined output, any path of inflation and output that is implementable via interest rate policy is also implementable through time-varying uniform transfers. In an analytical model with occasionally binding borrowing constraints, my condition holds generically. In a quantitative heterogeneous-agent model, the transfer policy that closes any given demand shortfall is furthermore well characterized by a small number of measurable sufficient statistics. My results extend to environments with investment if transfers are supplemented by another standard fiscal tool: bonus depreciation.