This paper studies the issue of equilibrium determinacy under monetary and fiscal policy feedback rules in an optimizing general equilibrium model with overlapping generations and flexible prices. It is shown that equilibria may be determinate also when monetary and fiscal policies are both passive. In particular, under passive monetary rules equilibrium uniqueness is more likely to be verified when fiscal policies are less committed to public debt stabilization.

Piergallini, A. (2004). Macroeconomic policies and equilibrium determinacy.

Macroeconomic policies and equilibrium determinacy

PIERGALLINI, ALESSANDRO
2004-10-01

Abstract

This paper studies the issue of equilibrium determinacy under monetary and fiscal policy feedback rules in an optimizing general equilibrium model with overlapping generations and flexible prices. It is shown that equilibria may be determinate also when monetary and fiscal policies are both passive. In particular, under passive monetary rules equilibrium uniqueness is more likely to be verified when fiscal policies are less committed to public debt stabilization.
ott-2004
en
monetary policy
fiscal policy
equilibrium determinacy
overlapping generations
Piergallini, A. (2004). Macroeconomic policies and equilibrium determinacy.
Piergallini, A
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/135
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