Strategic Interactions in U.S. Monetary and Fiscal Policies
(2022)
Journal Article
Chen, X., Leeper, E., & Leith, C. (2022). Strategic Interactions in U.S. Monetary and Fiscal Policies. Quantitative Economics, 13(2), 593-628. https://doi.org/10.3982/qe1678
We estimate a model in which fiscal and monetary policy obey the targeting rulesof distinct policy authorities, with potentially different objective functions. Wefind: (1) Time-consistent policy fits U.S. time series at least as well as instrument-ru... Read More about Strategic Interactions in U.S. Monetary and Fiscal Policies.