| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5057805 | Economics Letters | 2017 | 4 Pages |
Abstract
â¢Appropriate fiscal backing is essential for monetary policy.â¢Appropriate backing requires passive fiscal behavior.â¢Do the fiscal rules countries adopted deliver passive fiscal behavior?
Fiscal policies that stabilize debt may not provide the fiscal backing necessary for monetary policy to successfully target inflation. Appropriate backing is provided by passive fiscal behavior. Understanding the distinction between stabilizing and passive fiscal policies is central to the design of fiscal rules.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Yuting Bai, Eric M. Leeper,