We develop the theory of price-level determination in a range of models using both ad hoc
policy rules and jointly optimal monetary and fiscal policies and discuss empirical issues that …

We investigate what happens when the fiscal authorities do not react to rising public debt so
that the unpleasant task of fiscal sustainability falls upon the Central Bank (CB). In particular …

This paper studies the macroeconomic effects of monetary policy shocks when fiscal rules
are constrained to ensure public debt sustainability. In such an economy, the rise in the …

We build a new Keynesian DSGE model consisting of two heterogeneous countries in a
monetary union. We study how public debt consolidation in a country with high debt (like …

We welfare rank various tax-spending-debt policies in a New Keynesian model of a small
open economy featuring sovereign interest-rate premia and loss of monetary policy …

We study optimized monetary and fiscal feedback policy rules. The setup is a New
Keynesian DSGE model of a closed economy which is solved numerically using common …

The objective of this paper is to inquire the consequences of some simplifying assumptions
typically made in the overlapping generations (OLG) models of pension systems and …

We construct a staggered-price dynamic general equilibrium model with overlapping
generations based on uncertain lifetimes. Price stickiness plus lack of Ricardian …

This paper develops a simple two-country stock–flow-consistent model based on that of
Godley and Lavoie. In order to motivate the use of stabilisation policies, persistent …

Taylor rules, which link short-term interest rates to fluctuations in inflation and output, have
been shown to be a good guide (both positively and normatively) to the conduct of monetary …