05577oam 22011654 450 991097121590332120250426110608.0978661284473797814623507111462350712978145187431014518743169781452728865145272886097812828447351282844733(CKB)3170000000055408(SSID)ssj0000941861(PQKBManifestationID)11498818(PQKBTitleCode)TC0000941861(PQKBWorkID)10963832(PQKB)11309588(OCoLC)680613471(IMF)WPIEE2009286(MiAaPQ)EBC1606016(IMF)WPIEA2009286WPIEA2009286(EXLCZ)99317000000005540820020129d2009 uf 0engurcn|||||||||txtccrJointly Optimal Monetary and Fiscal Policy Rules under Borrowing Constraints /Michael Kumhof, Huixin Bi1st ed.Washington, D.C. :International Monetary Fund,2009.39 pIMF Working PapersBibliographic Level Mode of Issuance: Monograph9781451918472 145191847X Includes bibliographical references.Intro -- Contents -- I. Introduction -- II. The Model -- A. Infinitely-Lived Households -- B. Borrowing-Constrained Households -- C. Firms -- D. Government -- 1. Monetary Policy -- 2. Budget Constraint -- 3. Fiscal Policy -- E. Competitive Equilibrium -- F. Aggregate Welfare -- III. Calibration -- IV. Results -- A. Impulse Responses -- 1. Fiscal Policy Rule Parameters -- 2. Monetary Policy Rule Parameters -- B. Welfare under Different Shocks -- C. Welfare and Volatility -- 1. Welfare and Volatility of Policy Instruments -- 2. Efficiency Frontiers -- 3. Alternative Fiscal Instruments -- 4. Alternative Fiscal Rules -- 5. Comparison with the Canonical Infinite-Horizon Case -- V. Conclusion -- References -- Tables -- 1. Moments of the Data and the Model -- Figures -- 1. Positive Technology Shock, Different dtax -- 2. Negative Investment Shock, Different dtax -- 3. Positive Consumption Shock, Different dtax -- 4. Positive Technology Shock, Different dpie -- 5. Positive Technology Shock, Different dpie, No Liquidity-Constrained Agents . -- 6. Positive Technology Shock, Different di -- 7. Welfare - Technology Shock -- 8. Welfare - Investment Shock -- 9. Welfare - Consumption Shock -- 10. Welfare - All Shocks -- 11. Welfare and Policy Instrument Volatility -- 12. Welfare-Fiscal Volatility Efficiency Frontier -- 13. Welfare Comparison across Fiscal Instruments -- 14. 100 Percent Infinitely-Lived Agents - Welfare - 2 Dimensional -- 15. 100 Percent Infinitely-Lived Agents - Welfare - 1 Dimensional.We study the welfare properties of an economy where both monetary and fiscal policy follow simple rules, and where a subset of agents is borrowing constrained. The optimized fiscal rule is far more aggressive than automatic stabilizers, and stabilizes the income of borrowingconstrained agents, rather than output. The optimized monetary rule features super-inertia and a very low coefficient on inflation, which minimizes real wage volatility. The welfare gains of optimizing the fiscal rule are far larger than the welfare gains of optimizing the monetary rule. The preferred fiscal instruments are government spending and transfers targeted to borrowing-constrained agents.IMF Working Papers; Working Paper ;No. 2009/286Fiscal policyEconomic policyConsumptionimfDemand and Supply of Labor: GeneralimfEconomicsimfFiscal PolicyimfFiscal policyimfFiscal rulesimfIncome economicsimfLabor marketimfLabor supplyimfLaborimfLabourimfMacroeconomicsimfMacroeconomics: ConsumptionimfPublic finance & taxationimfPublic FinanceimfRevenue administrationimfRevenueimfSavingimfTaxation, Subsidies, and Revenue: GeneralimfWealthimfUnited StatesimfFiscal policy.Economic policy.ConsumptionDemand and Supply of Labor: GeneralEconomicsFiscal PolicyFiscal policyFiscal rulesIncome economicsLabor marketLabor supplyLaborLabourMacroeconomicsMacroeconomics: ConsumptionPublic finance & taxationPublic FinanceRevenue administrationRevenueSavingTaxation, Subsidies, and Revenue: GeneralWealth336.3Kumhof Michael1815645Bi Huixin1815795International Monetary Fund.DcWaIMFBOOK9910971215903321Jointly Optimal Monetary and Fiscal Policy Rules under Borrowing Constraints4371321UNINA