Strategic Interactions between an Independent Central Bank and a Myopic Government with Government Debt.
We analyse optimal discretionary games between a benevolent central bank and a myopic government in a New Keynesian model. First, when lump-sum taxes are available and public debt is absent, we show that a Nash game results in too much government spending and excessively high interest rates, while f...
| Egile Nagusiak: | , |
|---|---|
| Formatua: | Working paper |
| Hizkuntza: | English |
| Argitaratua: |
International Monetary Fund
2008
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