Unconventional Fiscal Policy at the Zero Bound

• 成果类型: Article
• 署名作者: Correia, Isabel; Farhi, Emmanuel; Nicolini, Juan Pablo; Teles, Pedro
• 署名单位: Banco de Portugal; Universidade Catolica Portuguesa; Harvard University; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis; Universidad Torcuato Di Tella
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.103.4.1172
• 发表日期: 2013
• 页码: 1172-1211
• 关键词: monetary-policy; public production; optimal taxation

摘要

When the zero lower bound on nominal interest rates binds, monetary policy cannot provide appropriate stimulus. We show that, in the standard New Keynesian model, tax policy can deliver such stimulus at no cost and in a time-consistent manner. There is no need to use inefficient policies such as wasteful public spending or future commitments to low interest rates. (JEL E12, E43, E52, E62, H20)