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| 02518nam 2200349zi 4500 |
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| 001 | 9.895724 |
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| 003 | CaOODSP |
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| 005 | 20221107174117 |
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| 006 | m o d f |
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| 007 | cr cn||||||||| |
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| 008 | 210127e20210126onca ob f000 0 eng d |
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| 040 | |aCaOODSP|beng|erda|cCaOODSP |
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| 043 | |an-us--- |
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| 086 | 1 |aFB3-5/2021-5E-PDF |
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| 100 | 1 |aChafwehé, Boris, |eauthor. |
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| 245 | 10|a(Optimal) monetary policy with and without debt / |cby Boris Chafwehé, Rigas Oikonomou, Romanos Priftis and Lukas Vogel. |
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| 264 | 1|aOttawa, Ontario, Canada : |bBank of Canada = Banque du Canada, |cJanuary 26, 2021. |
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| 264 | 4|c©2021 |
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| 300 | |a1 online resource (ii, 57 pages) : |bcolour illustrations. |
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| 336 | |atext|btxt|2rdacontent |
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| 337 | |acomputer|bc|2rdamedia |
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| 338 | |aonline resource|bcr|2rdacarrier |
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| 490 | 1 |aStaff working paper = |aDocument de travail du personnel, |x1701-9397 ; |v2021-5 |
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| 504 | |aIncludes bibliographical references (pages 43-45). |
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| 520 | 3 |a"We propose a framework of optimal monetary policy where debt sustainability may, or may not, be a relevant constraint for the central bank. We show analytically that in each environment the optimal interest rate path consists of a Taylor rule augmented with forward guidance terms. These terms arise either i) from "twisting interest rates" when the central bank ensures debt sustainability, or ii) under no debt concerns, from committing to keep interest rates low at the exit of the liquidity trap. The optimal policy is isomorphic to Leeper's (1991) "passive monetary/active fiscal policy" regime in the first instance, or "active monetary/passive fiscal policy" regime in the second. We insert our framework into a standard medium scale DSGE model calibrated to the US. Optimal passive monetary policy with debt concerns is ineffective in stabilizing inflation, whereas under no debt concerns, monetary policy is very effective in stabilizing the macroeconomy"--Abstract, page ii. |
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| 650 | 0|aMonetary policy|zUnited States|xEconometric models. |
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| 650 | 0|aDebts, Public|zUnited States|xEconometric models. |
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| 650 | 6|aPolitique monétaire|zÉtats-Unis|xModèles économétriques. |
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| 650 | 6|aDettes publiques|zÉtats-Unis|xModèles économétriques. |
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| 710 | 2 |aBank of Canada, |eissuing body. |
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| 830 | #0|aStaff working paper (Bank of Canada)|v2021-5.|w(CaOODSP)9.806221 |
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| 856 | 40|qPDF|s2.15 MB|uhttps://publications.gc.ca/collections/collection_2021/banque-bank-canada/FB3-5-2021-5-eng.pdf |
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