Electoral uncertainty, the deficit bias and the electoral cycle in a New Keynesian economy

Recent attempts to incorporate optimal fiscal policy into New Keynesian models subject to nominal inertia, have tended to assume that policy makers are benevolent and have access to a commitment technology. A separate literature, on the New Political Economy, has focused on real economies where the...

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Bibliographic Details
Main Authors: Wren-Lewis, S, Leith, C
Format: Working paper
Published: University of Oxford 2009