When is government debt accumulation optimal in a liquidity trap?

DOI10.1016/J.JEDC.2022.104591zbMath1518.91159OpenAlexW4321341774MaRDI QIDQ6164816

Charles de Beauffort

Publication date: 4 July 2023

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.jedc.2022.104591

zbMATH Keywords

rule-of-thumb consumersliquidity trapsticky wagesdistortionary taxationfiscal and monetary policyoptimal time-consistent policy

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64)

Cites Work

• Limited asset markets participation, monetary policy and (inverted) aggregate demand logic
• New Keynesian versus old Keynesian government spending multipliers
• Optimal fiscal and monetary policy under sticky prices.
• Optimal fiscal and monetary policy with occasionally binding zero bound constraints
• Optimal debt management in a liquidity trap
• Dealing with a liquidity trap when government debt matters: optimal time-consistent monetary and fiscal policy
• Solution and Maximum Likelihood Estimation of Dynamic Nonlinear Rational Expectations Models
• A Model of the Consumption Response to Fiscal Stimulus Payments
• Time Consistency and Duration of Government Debt: A Model of Quantitative Easing

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