Public Debt, Distortionary Taxation, and Monetary Policy
نویسندگان
چکیده
منابع مشابه
Distortionary Taxation, Debt, and Immigration
In this paper we investigate the behavior of an overlapping dynasties growth model with factor taxation to determine how much the natives of a country absorbing a flow of immigrants can use shifts in factor taxation or deficit finance to redistribute immigrant income to themselves. In an economy in which government expenditure is a fixed share of net national product, policy-makers can minimize...
متن کاملDistortionary scal policy and monetary policy goals1
We study interactions between monetary policy, which sets nominal interest rates, and scal policy, which levies distortionary income taxes to nance public goods, in a standard, stickyprice economy with monopolistic competition. Policymakersinability to commit in advance to future policies gives rise to excessive ination and excessive public spending, resulting in welfare losses equivalent t...
متن کاملDistortionary Fiscal Policy and Monetary Policy Goals
We reconsider the role of an inflation conservative central banker in a setting with distortionary taxation. To do so, we assume monetary and fiscal policy are decided by independent authorities that do not abide to past commitments. If the two authorities make policy decisions simultaneously, inflation conservatism causes fiscal overspending. But if fiscal policy is determined before monetary ...
متن کاملSchumpeterian Growth with Productive Public Spending and Distortionary Taxation
The latest version of Schumpeterian growth theory eliminates the scale effect by positing a process of development of new product lines that fragments the aggregate market in submarkets whose size does not increase with population. A key feature of this process is the sterilization of the effect of the size of the aggregate market on firms’ incentives to invest in the growth of a given product ...
متن کاملPublic Debt, Taxation, and Capital Intensiveness*
In his “Principles of Political Economy and Taxation” [9], Ricardo cautioned that the deficit-financing of public expenditures sets back the growth of capital. The reference was to economies with rapid adjustment to “full-employment” equilibrium. While the Keynesians denied the rapid-equilibration assumption, the postwar reevaluation of monetary policy led to a modern restatement of Ricardo’s d...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.2000714