Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5098991 | Journal of Economic Dynamics and Control | 2012 | 8 Pages |
Abstract
It is often believed that governments should either abstain from leading activist policies, or if they lead such policies, that these policies should somehow be “stabilizing”, in the sense of reducing the volatilities of some endogenous variables. We construct a model with explicit foundations where the optimal policies are activist, and they make both employment and output more volatile than in the no intervention case.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Jean-Pascal Bénassy,