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- W289752370 abstract "In this paper we derive optimal monetary targeting rules under various assumptions about fiscal behavior. In contrast to the existing literature we use a linear-quadratic approach and allow for dynamic games between the two policy authorities. It is shown that optimal monetary behavior is non-trivially determined by fiscal behavior. It is argued that output stabilization is generally not a monetary task. Furthermore, the results point out that monetary policy can only be optimal, if fiscal policy is committed to a predetermined targeting rule." @default.
- W289752370 created "2016-06-24" @default.
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- W289752370 date "2008-01-01" @default.
- W289752370 modified "2023-10-16" @default.
- W289752370 title "Optimal Monetary Policy in a Currency Union: Should a Central Bank Care about Output Stabilization?" @default.
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- W289752370 doi "https://doi.org/10.2139/ssrn.989582" @default.
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