Jointly Optimal Monetary and Fiscal Policy Rules under Borrowing Constraints /

We study the welfare properties of an economy where both monetary and fiscal policy follow simple rules, and where a subset of agents is borrowing constrained. The optimized fiscal rule is far more aggressive than automatic stabilizers, and stabilizes the income of borrowingconstrained agents, rathe...

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Detalles Bibliográficos
Autor principal: Kumhof, Michael
Otros Autores: Bi, Huixin
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2009.
Colección:IMF Working Papers; Working Paper ; No. 2009/286
Acceso en línea:Full text available on IMF