Fiscal stabilization vs. passivity

Bai, Yuting and Leeper, Eric (2017) Fiscal stabilization vs. passivity. Economics Letters, 154. pp. 105-108. ISSN 0165-1765

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Fiscal policies that stabilize debt may not provide the fiscal backing necessary for monetary policy to successfully target inflation. Appropriate backing is provided by passive fiscal behavior. Understanding the distinction between stabilizing and passive fiscal policies is central to the design of fiscal rules.

Item Type:
Journal Article
Journal or Publication Title:
Economics Letters
Additional Information:
This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 154, 2017 DOI: 10.1016/j.econlet.2017.03.003
Uncontrolled Keywords:
?? fiscal policyfiscal sustainabilitymonetary policyfinanceeconomics and econometrics ??
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Deposited On:
16 Mar 2017 04:50
Last Modified:
09 May 2024 00:46