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Author: Arturo Anton Publisher: LAP Lambert Academic Publishing ISBN: 9783838314228 Category : Languages : en Pages : 100
Book Description
Over the past twenty five years, fiscal and monetary authorities around the world have pursued policies roughly consistent with the insights from optimal monetary and fiscal policy. In the area of monetary policy, the modern consensus is to set policy rules so that nominal interest rates and inflation are low. In the area of fiscal policy, statutory corporate income tax rates have decreased sharply in OECD countries on average over time. Typically, theoretical models in the literature usually examine either monetary or fiscal policies in isolation, but not both of them simultaneously. This book presents two alternative dynamic, general equilibrium models where the prescriptions from optimal monetary and fiscal policies are simultaneously examined. These models offer some new insights on the interaction of such policies, especially in terms of their effects on household s welfare. A third chapter examines optimal fiscal policy in the context of preference reversals. This book should be especially useful for policymakers in the area of macroeconomics and researchers working in the field.
Author: Arturo Anton Publisher: LAP Lambert Academic Publishing ISBN: 9783838314228 Category : Languages : en Pages : 100
Book Description
Over the past twenty five years, fiscal and monetary authorities around the world have pursued policies roughly consistent with the insights from optimal monetary and fiscal policy. In the area of monetary policy, the modern consensus is to set policy rules so that nominal interest rates and inflation are low. In the area of fiscal policy, statutory corporate income tax rates have decreased sharply in OECD countries on average over time. Typically, theoretical models in the literature usually examine either monetary or fiscal policies in isolation, but not both of them simultaneously. This book presents two alternative dynamic, general equilibrium models where the prescriptions from optimal monetary and fiscal policies are simultaneously examined. These models offer some new insights on the interaction of such policies, especially in terms of their effects on household s welfare. A third chapter examines optimal fiscal policy in the context of preference reversals. This book should be especially useful for policymakers in the area of macroeconomics and researchers working in the field.
Author: Mr.Michael Kumhof Publisher: International Monetary Fund ISBN: 1451874316 Category : Business & Economics Languages : en Pages : 41
Book Description
We study the welfare properties of an economy where both monetary and fiscal policy follow simple rules, and where a subset of agents is borrowing constrained. The optimized fiscal rule is far more aggressive than automatic stabilizers, and stabilizes the income of borrowingconstrained agents, rather than output. The optimized monetary rule features super-inertia and a very low coefficient on inflation, which minimizes real wage volatility. The welfare gains of optimizing the fiscal rule are far larger than the welfare gains of optimizing the monetary rule. The preferred fiscal instruments are government spending and transfers targeted to borrowing-constrained agents.
Author: Jean-Pascal Bénassy Publisher: MIT Press ISBN: 0262026139 Category : Equilibrium (Economics) Languages : en Pages : 215
Book Description
An important recent advance in macroeconomics is the development of dynamic stochastic general equilibrium (DSGE) macromodels. The use of DSGE models to study monetary policy, however, has led to paradoxical and puzzling results on a number of central monetary issues including price determinacy and liquidity effects. In Money, Interest, and Policy, Jean-Pascal Benassy argues that moving from the standard DSGE models - which he calls "Ricardian" because they have the famous "Ricardian equivalence" property-to another, "non-Ricardian" model would resolve many of these issues. A Ricardian model represents a household as a homogeneous family of infinitely lived individuals, and Benassy demonstrates that a single modification-the assumption that new agents are born over time (which makes the model non-Ricardian)-can bridge the current gap between monetary intuitions and facts, on one hand, and rigorous modeling, on the other. After comparing Ricardian and non-Ricardian models, Benassy introduces a model that synthesizes the two approaches, incorporating both infinite lives and the birth of new agents. Using this model, he considers a number of issues in monetary policy, including liquidity effects, interest rate rules and price determinacy, global determinacy, the Taylor principle, and the fiscal theory of the price level. Finally, using a simple overlapping generations model, he analyzes optimal monetary and fiscal policies, with a special emphasis on optimal interest rate rules
Author: Pierpaolo Benigno Publisher: ISBN: Category : Economic policy Languages : en Pages : 68
Book Description
We propose an integrated treatment of the problems of optimal monetary and fiscal policy, for an economy in which prices are sticky and the only available sources of government revenue are distorting taxes. Our linear-quadratic approach allows us to nest both conventional analyses of optimal monetary stabilization policy and analyses of optimal tax-smoothing as special cases of our more general framework. We show how a linear-quadratic policy problem can be derived which yields a correct linear approximation to the optimal policy rules from the point of view of the maximization of expected discounted utility in a dynamic stochastic general-equilibrium model. Finally, we derive targeting rules through which the monetary and fiscal authorities may implement the optimal equilibrium
Author: Kenneth S. Rogoff Publisher: MIT Press ISBN: 0262072726 Category : Business & Economics Languages : en Pages : 479
Book Description
The 20th NBER Macroeconomics Annual, covering questions at the cutting edge of macroeconomics that are central to current policy debates.
Author: Narayana R. Kocherlakota Publisher: Princeton University Press ISBN: 1400835275 Category : Business & Economics Languages : en Pages : 230
Book Description
Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are bad insofar as they discourage people from working, but good to the degree that, by redistributing wealth, they help insure people against productivity shocks. Until recently, however, economic research on this question either ignored people's uncertainty about their future productivities or imposed strong and unrealistic functional form restrictions on taxes. In response to these problems, the new dynamic public finance was developed to study the design of optimal taxes given only minimal restrictions on the set of possible tax instruments, and on the nature of shocks affecting people in the economy. In this book, Narayana Kocherlakota surveys and discusses this exciting new approach to public finance. An important book for advanced PhD courses in public finance and macroeconomics, The New Dynamic Public Finance provides a formal connection between the problem of dynamic optimal taxation and dynamic principal-agent contracting theory. This connection means that the properties of solutions to principal-agent problems can be used to determine the properties of optimal tax systems. The book shows that such optimal tax systems necessarily involve asset income taxes, which may depend in sophisticated ways on current and past labor incomes. It also addresses the implications of this new approach for qualitative properties of optimal monetary policy, optimal government debt policy, and optimal bequest taxes. In addition, the book describes computational methods for approximate calculation of optimal taxes, and discusses possible paths for future research.
Author: Harold L. Cole Publisher: Oxford University Press ISBN: 0190076062 Category : Business & Economics Languages : en Pages : 277
Book Description
In Monetary and Fiscal Policy Through a DSGE Lens, Harold L. Cole develops and extends versions of a classic quantitative model of economic growth to take on a wide range of topics in monetary and fiscal policy. Bridging the gap between current undergraduate and graduate texts in the field, this comprehensive book covers the basic elements of advanced macroeconomics and equips readers to understand the debate on key policy questions. By using the simple DSGE, or dynamic stochastic general equilibrium, framework to build a series of quantitative models, the book combines a gradual introduction to advanced analytic methods with computer programming and quantitative policy analysis. In a clear discussion of the sophisticated interaction between theory and data, Cole explains how to gauge how well a model captures key elements in the data and how to reverse engineer a model to data. The book covers costs of inflation, optimal monetary policy, the impact of labor and capital taxes, and optimal fiscal policy. It systematically discusses technical material including the new Keynesian liquidity shock models, standard analytic methods, such as Lagrangian methods, and computational methods using Matlab and Python. With a strong computational emphasis, the volume teaches how to program up and solve systems of non-linear equations and develop models to study the macroeconomy. Knowing how to deeply understand and analyze models and develop computational code to evaluate the implications of those models is essential for students of macroeconomics. This book connects the standard undergraduate material to the elaborate models of advanced graduate courses with systematic and logical coverage of the basics of advanced modern macroeconomics.
Author: Torsten Persson Publisher: MIT Press ISBN: 9780262660884 Category : Business & Economics Languages : en Pages : 476
Book Description
This is the first of two volumes on a theory of macroeconomic policy that analyzes which policies are credible or politically feasible. Instead of looking at policy as an end product, the contributors approach policy as an ongoing process of revised goals, changes in tactics, and political pressures. They consider what kinds of incentives within different institutional settings, drive policy-making and the behaviour of policy-makers. The approach explains why certain monetary and fiscal policies are implemented, and provides insights into situations that occur repeatedly in macroeconomic policy, such as the bias toward government deficits, partisan competition and central bank independence.
Author: Arturo Anton
Author: Arturo Anton
Author: Arturo Antón
Author: Mr.Michael Kumhof
Author: Michal Horvath
Author: Jean-Pascal Bénassy
Author: Pierpaolo Benigno
Author: Kenneth S. Rogoff
Author: Narayana R. Kocherlakota
Author: Harold L. Cole
Author: Torsten Persson