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Article dans une revue Macroeconomic Dynamics Année : 2022

Ramsey Optimal Policy in theNew-Keynesian Model with Public Debt

Résumé

In the discrete-time new-Keynesian model with public debt, Ramsey optimal policy eliminates the indeterminacy of simple-rules multiple equilibria between the fiscal theory of the price level versus new-Keynesian versus an unpleasant equilibrium. If public debt volatility is taken into account into the loss function, the interest rate responds to public debt besides inflation and output gap. Else, the Taylor rule is identical to Ramsey optimal policy when there is zero public debt. The optimal fiscal-rule parameter implies the local stability of public-debt dynamics (“passive” fiscal policy).
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Dates et versions

halshs-03029890, version 1 (29-11-2020)

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Jean-Bernard Chatelain, Kirsten Ralf. Ramsey Optimal Policy in theNew-Keynesian Model with Public Debt. Macroeconomic Dynamics, 2022, 26 (6), ⟨10.1017/S136510052000070X⟩. ⟨halshs-03029890⟩
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Dernière date de mise à jour le 21/04/2024
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