We study the welfare properties of an economy where both monetary and fiscal policies follow simple rules, and where a subset of agents is liquidity constrained. The welf[...]

We build a tractable New Keynesian model to jointly study four types of monetary and fiscal policy. We find quantitative easing (QE) and tax-financed fiscal transfers or [...]

This paper assesses the prospects of a 2021 "time bomb" in small-and medium-sized enterprise (SME) failures triggered by the generous support policies enacted during the [...]

This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a relevant constraint on the effectiveness of conventional[...]

I show that debt maturity considerations affect the optimal conduct of monetary and fiscal policy in the presence of lower bound episodes. I consider a New Keynesian mode[...]

The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax- or spending-based - are uncertain. We find that the [...]

Since the work of Doepke and Schneider (2006a) and Meh and Terajima (2008), we know that inflation causes major redistribution of wealth – between households and the gove[...]

This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and [...]

This paper studies the interdependence between fiscal and monetary policies, and their joint role in the determination of the price level. The government is characterized[...]

The author provides an overview of the 1975–78 Anti-Inflation Program (AIP), in a background document prepared for a seminar organized by the Bank of Canada to mark the A[...]