The implementation of stabilization policy
نویسندگان
چکیده
In locally linearized dynamic stochastic rational‐expectations models, I introduce the concepts of feasible paths (paths on which policy instrument can be expressed as a function policymaker's observation set) and implementable that obtained, in minimally robust way, unique local equilibrium under policy‐instrument rule consistent with set). show that, for relevant sets, optimal path monetary non‐implementable new Keynesian model, while constant‐debt tax are always real business cycle model. The first result sounds note caution about one main lessons literature, namely importance central banks to track some key unobserved exogenous rates interest, second restores extent role income or labor‐income taxes safely stabilizing public debt. For any given path, how design arithmetically set implementing this robustly equilibrium.
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ژورنال
عنوان ژورنال: Theoretical Economics
سال: 2021
ISSN: ['1555-7561', '1933-6837']
DOI: https://doi.org/10.3982/te3322