Jointly optimal monetary and fiscal policy rules under borrowing constraints / prepared by Huizin Bi and Michael Kumhof.

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 borrowing constrained agents, rath...

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Bibliographic Details

Online Access:	Full Text (via ProQuest)
Main Authors:	Bi, Huixin (Author), Kumhof, Michael (Author)
Corporate Author:	International Monetary Fund. Research Department
Format:	Electronic eBook
Language:	English
Published:	[Washington, D.C.] : International Monetary Fund, ©2009.
Series:	IMF working paper ; WP/09/286.
Subjects:	Monetary policy > Econometric models. Fiscal policy > Econometric models. Loans > Econometric models. Credit > Econometric models. Credit > Econometric models Fiscal policy > Econometric models Loans > Econometric models Monetary policy > Econometric models