Strategic interactions in U.S. monetary and fiscal policies
نویسندگان
چکیده
We estimate a model in which fiscal and monetary policy obey the targeting rules of distinct authorities, with potentially different objective functions. find: (1) Time‐consistent fits U.S. time series at least as well instrument‐rules‐based behavior; (2) American policies often do not conform to conventional mix conservative debt‐stabilizing policy, although economic agents expect stabilize debt eventually; (3) Even after Volcker disinflation, did achieve that mix, begin until mid 1990s; (4) The high inflation 1970s could have been effectively mitigated by either switch rule or an increase conservatism; (5) If behavior follows its historic norm eventually debt, current levels produce only modest inflation; if confidence those norms erodes, may deliver substantially more inflation.
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ژورنال
عنوان ژورنال: Quantitative Economics
سال: 2022
ISSN: ['1759-7331', '1759-7323']
DOI: https://doi.org/10.3982/qe1678