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• W2181635104 abstract "Abstract This paper examines the implications of different monetary and fiscal policy rules in an economy characterized by Harrodian instability. We show that (1) a monetary rule along Taylor lines can be stabilizing for low debt ratios but becomes de‐stabilizing if the debt ratio exceeds a certain threshold, (2) a ‘Keynesian’ fiscal policy rule can stabilize the economy at full employment, (3) a fiscal ‘austerity’ rule that links fiscal parameters to deviations from a target debt ratio fails to adjust the ‘warranted’ to the ‘natural’ growth rate and destabilizes the warranted path and (4) instability may arise from a combination of fiscal and monetary policy rules which separately would stabilize the system." @default.
• W2181635104 created "2016-06-24" @default.
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• W2181635104 date "2016-06-16" @default.
• W2181635104 modified "2023-09-24" @default.
• W2181635104 title "Fiscal and Monetary Policy Rules in an Unstable Economy" @default.
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• W2181635104 doi "https://doi.org/10.1111/meca.12139" @default.
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