Commitment versus Discretion in a Political Economy Model of Fiscal and Monetary Policy Interaction
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Persson, Mats & Persson, Torsten & Svensson, Lars E O, 1987. "Time Consistency of Fiscal and Monetary Policy," Econometrica, Econometric Society, vol. 55(6), pages 1419-1431, November.
- Marco Battaglini & Stephen Coate, 2008.
"A Dynamic Theory of Public Spending, Taxation, and Debt,"
American Economic Review, American Economic Association, vol. 98(1), pages 201-236, March.
- Marco Battaglini & Steve Coate, 2006. "A Dynamic Theory of Public Spending, Taxation and Debt," Levine's Bibliography 122247000000001094, UCLA Department of Economics.
- Stephen Coate & Marco Battaglini, 2007. "A Dynamic Theory of Public Spending, Taxation and Debt," 2007 Meeting Papers 573, Society for Economic Dynamics.
- Marco Battaglini & Stephen Coate, 2007. "A Dynamic Theory of Public Spending, Taxation and Debt," Discussion Papers 1441, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Battaglini, Marco & Coate, Stephen, 2007. "A Dynamic Theory of Public Spending, Taxation and Debt," Working Papers 07-04, Cornell University, Center for Analytic Economics.
- Marco Battaglini & Stephen Coate, 2006. "A Dynamic Theory of Public Spending, Taxation and Debt," NBER Working Papers 12100, National Bureau of Economic Research, Inc.
- Marco Battaglini & Stephen Coate, 2006. "A Dynamic Theory of Public Spending, Taxation and Debt," NajEcon Working Paper Reviews 321307000000000026, www.najecon.org.
- Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
- Martin, Fernando M., 2011.
"On the joint determination of fiscal and monetary policy,"
Journal of Monetary Economics, Elsevier, vol. 58(2), pages 132-145, March.
- Fernando Martin, 2009. "On the Joint Determination of Fiscal and Monetary Policy," Discussion Papers dp09-01, Department of Economics, Simon Fraser University.
- Barseghyan, Levon & Battaglini, Marco & Coate, Stephen, 2013.
"Fiscal policy over the real business cycle: A positive theory,"
Journal of Economic Theory, Elsevier, vol. 148(6), pages 2223-2265.
- Marco Battaglini & Stephen Coate, 2008. "Fiscal Policy over the Real Business Cycle: A Positive Theory," NBER Working Papers 14047, National Bureau of Economic Research, Inc.
- Ricardo Lagos & Randall Wright, 2005.
"A Unified Framework for Monetary Theory and Policy Analysis,"
Journal of Political Economy, University of Chicago Press, vol. 113(3), pages 463-484, June.
- Ricardo Lagos & Randall Wright, 2002. "A unified framework for monetary theory and policy analysis," Working Papers (Old Series) 0211, Federal Reserve Bank of Cleveland.
- Ricardo Lagos & Randall Wright, 2004. "A unified framework for monetary theory and policy analysis," Staff Report 346, Federal Reserve Bank of Minneapolis.
- Adam, Klaus & Billi, Roberto M., 2008.
"Monetary conservatism and fiscal policy,"
Journal of Monetary Economics, Elsevier, vol. 55(8), pages 1376-1388, November.
- Roberto Billi & Klaus Adam, 2005. "Monetary and Fiscal Interactions without Commitment and the Value of Monetary Conservatism," Computing in Economics and Finance 2005 62, Society for Computational Economics.
- Klaus Adam & Roberto M. Billi, 2007. "Monetary conservatism and fiscal policy," Research Working Paper RWP 07-01, Federal Reserve Bank of Kansas City.
- Adam, Klaus & Billi, Roberto, 2006. "Monetary Conservatism and Fiscal Policy," CEPR Discussion Papers 5740, C.E.P.R. Discussion Papers.
- Adam, Klaus & Billi, Roberto M., 2006. "Monetary conservatism and fiscal policy," Working Paper Series 663, European Central Bank.
- Leeper, Eric M., 1991. "Equilibria under 'active' and 'passive' monetary and fiscal policies," Journal of Monetary Economics, Elsevier, vol. 27(1), pages 129-147, February.
- Marco Battaglini, 2009.
"On the Case for a Balanced Budget Amendment to the U.S. Constitution,"
2009 Meeting Papers
131, Society for Economic Dynamics.
- Marina, Azzimonti & Marco, Battaglini & Stephen, Coate, 2010. "On the Case for a Balanced Budget Amendment to the U.S. Constitution," MPRA Paper 25935, University Library of Munich, Germany.
- Thomas J. Sargent & Neil Wallace, 1984.
"Some Unpleasant Monetarist Arithmetic,"
Palgrave Macmillan Books, in: Brian Griffiths & Geoffrey E. Wood (ed.), Monetarism in the United Kingdom, pages 15-41,
Palgrave Macmillan.
- Thomas J. Sargent & Neil Wallace, 1981. "Some unpleasant monetarist arithmetic," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 5(Fall).
- Barro, Robert J, 1979.
"On the Determination of the Public Debt,"
Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-971, October.
- Barro, Robert J., 1979. "On the Determination of the Public Debt," Scholarly Articles 3451400, Harvard University Department of Economics.
- Bohn, Henning, 1988. "Why do we have nominal government debt?," Journal of Monetary Economics, Elsevier, vol. 21(1), pages 127-140, January.
- Chari, V V & Christiano, Lawrence J & Kehoe, Patrick J, 1991.
"Optimal Fiscal and Monetary Policy: Some Recent Results,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(3), pages 519-539, August.
- V. V. Chari & Lawrence J. Christiano & Patrick J. Kehoe, 1991. "Optimal fiscal and monetary policy: some recent results," Proceedings, Federal Reserve Bank of Cleveland, pages 519-546.
- V. V. Chari & Lawrence J. Christiano & Patrick J. Kehoe, 1991. "Optimal fiscal and monetary policy: some recent results," Staff Report 147, Federal Reserve Bank of Minneapolis.
- Lawrence J. Christiano & Terry J. Fitzgerald, 2000.
"Understanding the fiscal theory of the price level,"
Economic Review, Federal Reserve Bank of Cleveland, issue Q II, pages 2-38.
- Lawrence J. Christiano & Terry J. Fitzgerald, 2000. "Understanding the Fiscal Theory of the Price Level," NBER Working Papers 7668, National Bureau of Economic Research, Inc.
- Lucas, Robert Jr. & Stokey, Nancy L., 1983.
"Optimal fiscal and monetary policy in an economy without capital,"
Journal of Monetary Economics, Elsevier, vol. 12(1), pages 55-93.
- Robert E. Lucas Jr. & Nancy L. Stokey, 1982. "Optimal Fiscal and Monetary Policy in an Economy Without Capital," Discussion Papers 532, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Rogoff, Kenneth, 1985. "Can international monetary policy cooperation be counterproductive?," Journal of International Economics, Elsevier, vol. 18(3-4), pages 199-217, May.
- Fernando Alvarez & Patrick J. Kehoe & Pablo Andrés Neumeyer, 2004.
"The Time Consistency of Optimal Monetary and Fiscal Policies,"
Econometrica, Econometric Society, vol. 72(2), pages 541-567, March.
- Pablo Andres Neumeyer & Fernando Alvarez & Pat Kehoe, 2003. "The Time Consistency of Optimal Monetary and Fiscal Policies," Department of Economics Working Papers 005, Universidad Torcuato Di Tella.
- Schmitt-Grohe, Stephanie & Uribe, Martin, 2000.
"Price level determinacy and monetary policy under a balanced-budget requirement,"
Journal of Monetary Economics, Elsevier, vol. 45(1), pages 211-246, February.
- Stephanie Schmitt-Grohe & Martin Uribe, 1997. "Price level determinacy and monetary policy under a balanced-budget requirement," Finance and Economics Discussion Series 1997-17, Board of Governors of the Federal Reserve System (U.S.).
- Stephanie Schmitt-Grohe & Martin Uribe, 1998. "Price Level Determinacy and Monetary Policy under a Balanced-Budget Requirement," Departmental Working Papers 199833, Rutgers University, Department of Economics.
- S. Rao Aiyagari & Albert Marcet & Thomas J. Sargent & Juha Seppala, 2002.
"Optimal Taxation without State-Contingent Debt,"
Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1220-1254, December.
- Albert Marcet & Thomas J. Sargent & Juha Seppala, 1996. "Optimal taxation without state-contingent debt," Economics Working Papers 170, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2001.
- Stefania Albanesi & V. V. Chari & Lawrence J. Christiano, 2003.
"How severe is the time-inconsistency problem in monetary policy?,"
Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 27(Sum), pages 17-33.
- Stefania Albanesi & V.V. Chari & Lawrence J. Christiano, 2001. "How Severe is the Time Inconsistency Problem in Monetary Policy?," NBER Working Papers 8139, National Bureau of Economic Research, Inc.
- Fischer, Stanley, 1995. "Central-Bank Independence Revisited," American Economic Review, American Economic Association, vol. 85(2), pages 201-206, May.
- Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Miller, David S., 2016. "Commitment versus discretion in a political economy model of fiscal and monetary policy interaction," Journal of Monetary Economics, Elsevier, vol. 84(C), pages 17-29.
- Leeper, E.M. & Leith, C., 2016. "Understanding Inflation as a Joint Monetary–Fiscal Phenomenon," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 2305-2415, Elsevier.
- Campbell Leith & Eric Leeper, 2016.
"Understanding Inflation as a Joint Monetary-Fiscal Phenomenon,"
Working Papers
2016_01, Business School - Economics, University of Glasgow.
- Campbell Leith, 2016. "Understanding Inflation as a Joint Monetary-Fiscal Phenomenon," Working Papers 2016-01, Becker Friedman Institute for Research In Economics.
- Eric M. Leeper & Campbell Leith, 2016. "Understanding Inflation as a Joint Monetary-Fiscal Phenomenon," NBER Working Papers 21867, National Bureau of Economic Research, Inc.
- Martin, Fernando M., 2015.
"Debt, inflation and central bank independence,"
European Economic Review, Elsevier, vol. 79(C), pages 129-150.
- Fernando Martin, 2012. "Debt, Inflation and Central Bank Independence," 2012 Meeting Papers 1019, Society for Economic Dynamics.
- Fernando M. Martin, 2013. "Debt, inflation and central bank independence," Working Papers 2013-017, Federal Reserve Bank of St. Louis.
- Fernando M. Martin, 2013.
"Government Policy In Monetary Economies,"
International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(1), pages 185-217, February.
- Fernando M. Martin, 2010. "Government Policy in Monetary Economies," Discussion Papers dp10-01, Department of Economics, Simon Fraser University.
- Fernando M. Martin, 2011. "Government policy in monetary economies," Working Papers 2011-026, Federal Reserve Bank of St. Louis.
- Madison, Florian, 2024. "A microfounded approach to currency substitution and government policy," Journal of Economic Theory, Elsevier, vol. 219(C).
- Canzoneri, Matthew & Cumby, Robert & Diba, Behzad, 2010. "The Interaction Between Monetary and Fiscal Policy," Handbook of Monetary Economics, in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 17, pages 935-999, Elsevier.
- Philip Arestis & Alexander Mihailov, 2011.
"Classifying Monetary Economics: Fields And Methods From Past To Future,"
Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), pages 769-800, September.
- Philip Arestis & Alexander Mihailov, 2008. "Classifying Monetary Economics: Fields and Methods from Past to Future," Economics Discussion Papers em-dp2008-64, Department of Economics, University of Reading.
- Stefano Gnocchi & Luisa Lambertini, 2016. "Monetary Commitment and the Level of Public Debt," Staff Working Papers 16-3, Bank of Canada.
- Martin, Fernando M., 2011.
"On the joint determination of fiscal and monetary policy,"
Journal of Monetary Economics, Elsevier, vol. 58(2), pages 132-145, March.
- Fernando Martin, 2009. "On the Joint Determination of Fiscal and Monetary Policy," Discussion Papers dp09-01, Department of Economics, Simon Fraser University.
- Azzimonti, Marina & Battaglini, Marco & Coate, Stephen, 2016.
"The costs and benefits of balanced budget rules: Lessons from a political economy model of fiscal policy,"
Journal of Public Economics, Elsevier, vol. 136(C), pages 45-61.
- Marina Azzimonti & Marco Battaglini & Stephen Coate, 2015. "The Costs and Benefits of Balanced Budget Rules: Lessons from a Political Economy Model of Fiscal Policy," Department of Economics Working Papers 15-03, Stony Brook University, Department of Economics.
- V. V. Chari & Patrick J. Kehoe, 2006.
"Modern Macroeconomics in Practice: How Theory Is Shaping Policy,"
Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 3-28, Fall.
- V. V. Chari & Patrick J. Kehoe, 2006. "Modern macroeconomics in practice: how theory is shaping policy," Staff Report 376, Federal Reserve Bank of Minneapolis.
- Patrick Kehoe & Varadarajan V. Chari, 2006. "Modern Macroeconomics in Practice: How Theory is Shaping Policy," NBER Working Papers 12476, National Bureau of Economic Research, Inc.
- Barseghyan, Levon & Battaglini, Marco, 2016.
"Political economy of debt and growth,"
Journal of Monetary Economics, Elsevier, vol. 82(C), pages 36-51.
- Marco Battaglini & Levon Barseghyan, 2015. "Political Economy of Debt and Growth," NBER Working Papers 21660, National Bureau of Economic Research, Inc.
- Alesina, A. & Passalacqua, A., 2016.
"The Political Economy of Government Debt,"
Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 2599-2651,
Elsevier.
- Alberto Alesina & Andrea Passalacqua, 2015. "The Political Economy of Government Debt," NBER Working Papers 21821, National Bureau of Economic Research, Inc.
- repec:zbw:bofrdp:2004_020 is not listed on IDEAS
- Jukka Railavo, 2005. "Monetary Concequences of Alternative Fiscal Policy Rules," Computing in Economics and Finance 2005 145, Society for Computational Economics.
- Caballero, Ricardo J. & Yared, Pierre, 2010.
"Future rent-seeking and current public savings,"
Journal of International Economics, Elsevier, vol. 82(2), pages 124-136, November.
- Ricardo J. Caballero & Pierre Yared, 2008. "Future Rent-Seeking and Current Public Savings," NBER Working Papers 14417, National Bureau of Economic Research, Inc.
- repec:zbw:bofism:2006_033 is not listed on IDEAS
- Martin Fernando M., 2012.
"Government Policy Response to War-Expenditure Shocks,"
The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-40, July.
- Fernando M. Martin, 2011. "Government policy response to war-expenditure shocks," Working Papers 2011-028, Federal Reserve Bank of St. Louis.
- Lawrence J. Christiano & Terry J. Fitzgerald, 2000.
"Understanding the fiscal theory of the price level,"
Economic Review, Federal Reserve Bank of Cleveland, issue Q II, pages 2-38.
- Lawrence J. Christiano & Terry J. Fitzgerald, 2000. "Understanding the Fiscal Theory of the Price Level," NBER Working Papers 7668, National Bureau of Economic Research, Inc.
- D. Masciandaro, 2019. "What Bird Is That? Central Banking And Monetary Policy In The Last Forty Years," BAFFI CAREFIN Working Papers 19127, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
- Railavo, Jukka, 2004. "Monetary consequences of alternative fiscal policy rules," Research Discussion Papers 20/2004, Bank of Finland.
More about this item
NEP fields
This paper has been announced in the following NEP Reports:- NEP-CBA-2014-08-28 (Central Banking)
- NEP-DGE-2014-08-28 (Dynamic General Equilibrium)
- NEP-MAC-2014-08-28 (Macroeconomics)
- NEP-MON-2014-08-28 (Monetary Economics)
- NEP-PBE-2014-08-28 (Public Economics)
- NEP-POL-2014-08-28 (Positive Political Economics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:sed014:80. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.