A model of fiscal dominance under the “Reinhart Conjecture”
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DOI: 10.1016/j.jedc.2018.01.046
Abstract: This paper proposes some simple models where the central bank trades off between stabilizing the business cycle and targeting inflation to a level that stabilizes the public debt ratio. We show that in a closed… read more here.
Keywords: model fiscal; debt; fiscal dominance; inflation ... See more keywords
THE MACROECONOMIC IMPACT OF MONETARY-FISCAL POLICY IN A “FISCAL DOMINANCE” WORLD
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DOI: 10.1017/s1365100518000408
Abstract: This paper focuses on the question of what monetary and fiscal policy can do and should do in a “fiscal dominance” world. I first highlight that both “amplification” and “fiscal cushion” effects are always at… read more here.
Keywords: monetary fiscal; fiscal policy; policy; fiscal dominance ... See more keywords