TY  - UNPD
A1  - Schmidt, Sebastian
T1  - Optimal monetary and fiscal policy with a zero bound on nominal interest rates
T2  - Working paper series / Institute for Monetary and Financial Stability ; 53
N2  - I characterize optimal monetary and fiscal policy in a stochastic New Keynesian model when nominal interest rates may occasionally hit the zero lower bound. The benevolent policymaker controls the short-term nominal interest rate and the level of government spending. Under discretionary policy, accounting for fiscal stabilization policy eliminates to a large extent the welfare losses associated with the presence of the zero bound. Under commitment, the gains associated with the use of the fiscal policy tool remain modest, even though fiscal stabilization policy is part of the optimal policy mix.
T3  - Working paper series / Institute for Monetary and Financial Stability - 53 
KW  - Monetary policy
KW  - Fiscal policy
KW  - Discretion
KW  - Commitment
KW  - Zero nominal interest rate bound
KW  - New Keynesian model
Y1  - 2012
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/25336
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-253365
UR  - http://www.imfs-frankfurt.de/fileadmin/user_upload/pdf/WP_53.pdf
ER  -