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 de...

The paper uses a reduced-form vector autoregressive framework to study the effects of quantitative easing and operation ‘‘twist’’, as well as a conventional monetary expansion, on corporate bond yields and spreads. We construct ratingand maturity-based weekly bond portfolios using TRACE and simulate monetary policies as shocks to the Treasury yield curve. We find that none of the policies can p...

Since the turn of the millennium, voters in the industrialized countries are increasingly expressing their dissatisfaction. Based on the theoretical concepts of justice by Hayek (1976), Rawls (1972, 2001) and Brennan and Buchanan (2000 [1985]) we argue that the growing dissatisfaction is rooted in the asymmetric pattern in monetary policies since the 1980s for two reasons. First, the structural...

This paper focuses on internal and external factors, which influence the inflation rate in developing countries. A monetary model of inflation rate, capable of incorporating both monetary and fiscal policies as well as other internal and external factors, was developed and tested on Iranian data. It was found that, over the long run, a higher exchange rate leads to a higher price and that the f...