Optimal Fiscal and Monetary Policy with Nominal and Indexed Debt /

This paper highlights the importance of debt composition in setting optimal fiscal and monetary policy over short-run business cycles and in the long run. Nominal debt as state-contingent debt can be a significant policy tool to reduce the volatility of distortionary government policy, thereby reduc...

पूर्ण विवरण

ग्रंथसूची विवरण
मुख्य लेखक: Cosimano, Thomas
अन्य लेखक: Gapen, Michael
स्वरूप: पत्रिका
भाषा:English
प्रकाशित: Washington, D.C. : International Monetary Fund, 2003.
श्रृंखला:IMF Working Papers; Working Paper ; No. 2003/225
ऑनलाइन पहुंच:Full text available on IMF
विवरण
सारांश:This paper highlights the importance of debt composition in setting optimal fiscal and monetary policy over short-run business cycles and in the long run. Nominal debt as state-contingent debt can be a significant policy tool to reduce the volatility of distortionary government policy, thereby reducing macroeconomic volatility while increasing equilibrium output and consumption. The welfare gain from using nominal debt to hedge against shocks to the government budget is as large as the welfare gain from the ability to issue debt.
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भौतिक वर्णन:1 online resource (39 pages)
स्वरूप:Mode of access: Internet
आईएसएसएन:1018-5941
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