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- W2954125823 abstract "This paper highlights the importance of debt composition in setting optimal fiscal and monetary policy over short-run business cycles and in the long run. Nominal debt as state-contingent debt can be a significant policy tool to reduce the volatility of distortionary government policy, thereby reducing macroeconomic volatility while increasing equilibrium output and consumption. The welfare gain from using nominal debt to hedge against shocks to the government budget is as large as the welfare gain from the ability to issue debt." @default.
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- W2954125823 date "2003-01-01" @default.
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- W2954125823 title "Optimal Fiscal and Monetary Policy with Nominal and Indexed Debt" @default.
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