| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 967252 | Journal of Monetary Economics | 2011 | 14 Pages |
Abstract
⺠Determination of fiscal and monetary policy absent commitment. ⺠Intertemporal distortion smoothing interacts with a time-consistency problem. ⺠Money micro-foundations refine our understanding of policy trade-offs. ⺠Long-run policy is time-consistent, featuring intra- and inter-temporal distortions. ⺠The welfare loss due to lack of commitment is small for any initial level of debt.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Fernando M. Martin,