The dire effects of the lack of monetary and fiscal coordination
| dc.contributor.author | BIANCHI, Francesco | |
| dc.contributor.author | MELOSI, Leonardo | |
| dc.date.accessioned | 2020-02-10T16:07:31Z | |
| dc.date.available | 2020-02-10T16:07:31Z | |
| dc.date.issued | 2019 | |
| dc.description | Available online 28 September 2018 | en |
| dc.description.abstract | If the government's willingness to stabilize debt is waning, while the central bank is adamant about keeping inflation low, the economy enters a vicious spiral of higher inflation, monetary tightening, recession, and further debt accumulation. The mere possibility of this conflict represents a drag on the economy. A commitment to inflate away the debt accumulated during a large recession leads to welfare improvements and lower uncertainty by separating long-run fiscal sustainability from the short-run fiscal stimulus. This strategy can be used to avoid the zero lower bound. As a technical contribution, we explain how to build shock-specific policy rules. (C) 2018 Elsevier B.V. All rights reserved. | en |
| dc.identifier.citation | Journal of monetary economics, 2019, Vol. 104, pp. 1-22 | en |
| dc.identifier.doi | 10.1016/j.jmoneco.2018.09.001 | |
| dc.identifier.endpage | 22 | |
| dc.identifier.issn | 0304-3932 | |
| dc.identifier.issn | 1873-1295 | |
| dc.identifier.startpage | 1 | |
| dc.identifier.uri | https://hdl.handle.net/1814/66002 | |
| dc.identifier.volume | 104 | |
| dc.language.iso | en | |
| dc.publisher | Elsevier | en |
| dc.relation.ispartof | Journal of monetary economics | en |
| dc.subject | Monetary and fiscal policies | en |
| dc.subject | Coordination | en |
| dc.subject | Emergency budget | en |
| dc.subject | Markov-switching models | en |
| dc.subject | Liquidity traps welfare | en |
| dc.subject | Uncertainty | en |
| dc.title | The dire effects of the lack of monetary and fiscal coordination | en |
| dc.type | Article | |
| dspace.entity.type | Publication | |
| eui.subscribe.skip | true | |
| eui.subscribe.skip | true | |
| person.identifier.orcid | 0009-0001-0450-3284 | |
| person.identifier.other | 42866 | |
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| relation.isAuthorOfPublication.latestForDiscovery | 518f09bc-c1a0-4faa-a2bc-dbfe419e2076 |