A fiscal perspective on nominal GDP targeting.
This paper studies fiscal policy in a model with nominal gross domestic product (GDP) targeting. We find that, with wage rigidity, nominal GDP targeting generates lower welfare losses than inflation targeting and a Taylor rule. On the other hand, adopting this regime makes standard fiscal policy rul...
| Publicado en: | Economic Inquiry Vol. 59; no. 4; pp. 1641 - 1661 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Oct2021
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=152634453&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 152634453 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Oct2021 vid: 59 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 152634453 10.1111/ecin.13016 ppf: 1641 ppct: 20 formats: fmt: @attributes: type: P size: 1.1MB tig: atl: A fiscal perspective on nominal GDP targeting. aug: au: Abo‐Zaid, Salem Chen, Huiying Kamara, Ahmed affil: Department of Economics, University of Maryland‐Baltimore County, Baltimore Maryland,, USA Department of Economics, University of Central Oklahoma, Edmond Oklahoma,, USA Department of Decision Sciences & Economics, College of Business, Texas A&M University‐Corpus Christi, Corpus Christi Texas,, USA su: Fiscal policy Taylor's rule Inflation targeting Gross domestic product Monetary policy sug: subj: Fiscal policy Public Finance Activities Taylor's rule Inflation targeting Gross domestic product Monetary policy keyword: fiscal policy government spending multiplier inflation targeting nominal GDP targeting tax multipliers welfare fiscal policy government spending multiplier inflation targeting nominal GDP targeting tax multipliers welfare ab: This paper studies fiscal policy in a model with nominal gross domestic product (GDP) targeting. We find that, with wage rigidity, nominal GDP targeting generates lower welfare losses than inflation targeting and a Taylor rule. On the other hand, adopting this regime makes standard fiscal policy rules, whereby distortionary tax rates are designed to respond to economic activity, dependent on the behavior of inflation instead. We also find that the fiscal multipliers with nominal GDP targeting are smaller than the multipliers under inflation targeting and the Taylor rule. Therefore, nominal GDP targeting does not necessarily outperform other monetary policy rules. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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