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Optimal Fiscal and Monetary Policy

Equivalence Results

Bibliographic Data

ID10171014
AuthorsIsabel Correia (0000-0002-9982-280X, Banco de Portugal), Juan Pablo Nicolini (0000-0002-3138-6343, Universidad Torcuato Di Tella), Pedro Teles (0000-0001-7969-1403, Banco de Portugal)
Year2008
Volume116
Issue1
Pages141-170
Publication date2008-02-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/533504
OpenAlexW2103649432
LanguageEN
Citations received10
References cited22

In this article, we analyze the implications of price-setting restrictions for the conduct of cyclical fiscal and monetary policy. We consider standard monetary economies that differ in the price-setting restrictions imposed on the firms. We show that, independently of the degree or type of price stickiness, it is possible to implement the same efficient set of allocations and that each allocation in that set is implemented with policies that are also independent of the price stickiness. In this sense, environments with different price-setting restrictions are equivalent. (c) 2008 by The University of Chicago. All rights reserved

Economics · Equivalence (formal languages · Fiscal policy · Microeconomics · Monetary economics · Monetary policy · Price level · Price setting · Ricardian equivalence · Set (abstract data type · Computer Science · Economic theories and models · Fiscal Policies and Political Economy · Mathematics · Monetary Policy and Economic Impact

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Unique citing works10
Citations per year0,5
Citation span2006 - 2024 (19)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 9
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