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Optimal monetary and fiscal policy with limited asset market participation /
This paper characterises the jointly optimal monetary and fiscal stabilisation policy in a new Keynesian model that allows for consumers who lacking access to asset markets consume their disposable income each period. With full asset market participation, the optimal policy relies entirely on the in...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Autor Corporativo: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, D.C.] :
International Monetary Fund,
©2009.
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| Colección: | IMF working paper ;
WP/09/137. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper characterises the jointly optimal monetary and fiscal stabilisation policy in a new Keynesian model that allows for consumers who lacking access to asset markets consume their disposable income each period. With full asset market participation, the optimal policy relies entirely on the interest rate to stabilise cost-push shocks and government expenditure is not changed. When asset market participation is limited, there is a case for fiscal stabilisation policy. Active use of public spending raises aggregate welfare because it enables a more balanced distribution of the stabilisatio. |
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| Descripción Física: | 1 online resource (34 pages) : color illustrations |
| Bibliografía: | Includes bibliographical references (pages 33-34). |
| ISBN: | 1451917139 9781451917130 146233458X 9781462334582 1452757135 9781452757131 1451872844 9781451872842 9786612843518 6612843519 1282843516 9781282843516 |
| ISSN: | 2227-8885 ; |