Semantic Scholar Open Access 1999 733 sitasi

Optimal Fiscal and Monetary Policy

V. V. Chari V. V. Chari V. V. Chari Patrick J. Kehoe Patrick J. Kehoe +1 lainnya

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Abstrak

We provide an introduction to optimal fiscal and monetary policy using the primal approach to optimal taxation. We use this approach to address how fiscal and monetary policy should be set over the long run and over the business cycle. We find four substantive lessons for policymaking: Capital income taxes should be high initially and then roughly zero; tax rates on labor and consumption should be roughly constant; state-contingent taxes on assets should be used to provide insurance against adverse shocks; and monetary policy should be conducted so as to keep nominal interest rates close to zero. We begin optimal taxation in a static context. We then develop a general framework to analyze optimal fiscal policy. Finally, we analyze optimal monetary policy in three commonly used models of money: a cash-credit economy, a money-in-the-utility-function economy

Topik & Kata Kunci

Economics

Penulis (6)

V. V. Chari

Patrick J. Kehoe

Format Sitasi

APA MLA BibTeX

Chari, V.V., Chari, V.V., Chari, V.V., Kehoe, P.J., Kehoe, P.J., Kehoe, P.J. (1999). Optimal Fiscal and Monetary Policy. https://doi.org/10.2139/SSRN.146869

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Lihat di Sumber doi.org/10.2139/SSRN.146869

Informasi Jurnal

Tahun Terbit: 1999
Bahasa: en
Total Sitasi: 733×
Sumber Database: Semantic Scholar
DOI: 10.2139/SSRN.146869
Akses: Open Access ✓