Konferenzbeitrag
Budget-neutral fiscal rules targeting inflation differentials
In light of persistent inflation dispersion and high debt levels in the EMU, this paper investigates the desirability of budget-neutral fiscal policy rules that respond to the domestic inflation differential. The paper employs a two-country DSGE model of a monetary union with traded and non-traded goods. When consumption or labour income taxes respond to the domestic inflation differential while lump-sum taxes balance the budget, a national fiscal authority is able to reduce welfare costs of business cycle fluctuations by 1-4%. When lump-sum taxes are absent, hybrid rules using only distortionary taxes can reduce welfare costs by 6-10% under demand and supply disturbances. Gains in welfare stem from higher mean consumption due to lower price dispersion when the fiscal authority actively compresses the domestic inflation differential and thus domestic inflation.
- Sprache
-
Englisch
- Erschienen in
-
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Business Cycles: Policy and Entrepreneurship ; No. C08-V1
- Klassifikation
-
Wirtschaft
Fiscal Policy
Open Economy Macroeconomics
Macroeconomic Issues of Monetary Unions
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Brede, Maren
- Ereignis
-
Veröffentlichung
- (wer)
-
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
- (wo)
-
Kiel und Hamburg
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:46 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Konferenzbeitrag
Beteiligte
- Brede, Maren
- ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
Entstanden
- 2016
Ähnliche Objekte (12)
Budget-neutral fiscal rules targeting inflation differentials
Inflation targeting or fiscal activism?
Fiscal Policy Under Inflation Targeting
Policy rules for inflation targeting
Inflation targeting as a monetary policy rule
Inflation targeting as a monetary policy rule
Inflation targeting as a monetary policy rule
Inflation Targeting Rules: History-Dependent or Forwarding-Looking?
Inflation targeting, credibility and non-linear Taylor rules
Fiscal targeting rules and macroeconomic stability under distortionary taxation
Fiscal targeting rules and macroeconomic stability under distortionary taxation
Inflation targeting
Budget-neutral fiscal rules targeting inflation differentials
Inflation targeting or fiscal activism?
Fiscal Policy Under Inflation Targeting
Policy rules for inflation targeting
Inflation targeting as a monetary policy rule
Inflation targeting as a monetary policy rule
Inflation targeting as a monetary policy rule
Inflation Targeting Rules: History-Dependent or Forwarding-Looking?
Inflation targeting, credibility and non-linear Taylor rules
Fiscal targeting rules and macroeconomic stability under distortionary taxation
Fiscal targeting rules and macroeconomic stability under distortionary taxation
Inflation targeting
Budget-neutral fiscal rules targeting inflation differentials
Inflation targeting or fiscal activism?
Fiscal Policy Under Inflation Targeting
Policy rules for inflation targeting
Inflation targeting as a monetary policy rule
Inflation targeting as a monetary policy rule
Inflation targeting as a monetary policy rule
Inflation Targeting Rules: History-Dependent or Forwarding-Looking?
Inflation targeting, credibility and non-linear Taylor rules
Fiscal targeting rules and macroeconomic stability under distortionary taxation
Fiscal targeting rules and macroeconomic stability under distortionary taxation