Optimal fiscal and monetary policy: Equivalence results

• 成果类型: Article
• 署名作者: Correia, Isabel; Nicolini, Juan Pablo; Teles, Pedro
• 署名单位: Universidade Catolica Portuguesa; Banco de Portugal
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/533504
• 发表日期: 2008
• 页码: 141-170
• 关键词: optimal maturity; DYNAMICS; prices; debt

摘要

In this article, we analyze the implications of price-setting restrictions for the conduct of cyclical fiscal and monetary policy. We consider standard monetary economies that differ in the price-setting restrictions imposed on the firms. We show that, independently of the degree or type of price stickiness, it is possible to implement the same efficient set of allocations and that each allocation in that set is implemented with policies that are also independent of the price stickiness. In this sense, environments with different price-setting restrictions are equivalent.