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• W3125981230 abstract "Yes, indeed; at least for macroeconomic policy interaction. We examine a Neo-Classical economy and provide the conditions for policy arrangements to successfully stabilize the economy when agents have either rational or adaptive expectations. For a contemporaneous-data monetary policy rule, the monetarist solution is unique and stationary under a passive fiscal/active monetary policy regime if monetary policy appropriately incorporates expectational heterogeneity. In contrast, the active fiscal/passive monetary policy regime's fiscalist solution is prone to explosiveness due to empirically plausible expectational heterogeneity. Nevertheless, this can be a well-defined, rather orthodox equilibrium. For operational monetary policy rules, only the results for the fiscalist solution prevail. Moreover, our results are plausible from an adaptive learning viewpoint." @default.
• W3125981230 created "2021-02-01" @default.
• W3125981230 creator A5022053554 @default.
• W3125981230 date "2018-12-01" @default.
• W3125981230 modified "2023-09-25" @default.
• W3125981230 title "DO HETEROGENEOUS EXPECTATIONS CONSTITUTE A CHALLENGE FOR POLICY INTERACTION?" @default.
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• W3125981230 doi "https://doi.org/10.1017/s1365100516001036" @default.
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