The Choice of Monetary Regime

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The Choice of Monetary Regime

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dc.contributor.author Østrup, Finn en_US
dc.date.accessioned 2009-02-04T10:26:18Z
dc.date.available 2009-02-04T10:26:18Z
dc.date.issued 2005-05-25T00:00:00Z en_US
dc.identifier.isbn 8790705912 en_US
dc.identifier.uri http://hdl.handle.net/10398/7174
dc.description.abstract The article examines how government spending is determined in a closed economy where the nominal wage is pre-set through contracts and the wage setters have perfect foresight regarding subsequent policy decisions. The monetary regime affects government spending because: (i) with a pre-set nominal wage, a given change in government spending has different effects on employment and inflation under different monetary regimes, and (ii) the authorities’ inclination to expand government spending is affected by the inflation rate which depends on the monetary regime. If the costs related to inflation are high, a comparison between monetary regimes suggests that welfare is highest under nominal income targeting where the nominal income target is determined to bring about price stability. Keywords: Monetary regimes; fiscal policy; monetary non-neutrality. JEL classicification: E42, E61, E62. en_US
dc.format.extent 23 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2005-002 en_US
dc.subject.other monetary non-neutrality en_US
dc.subject.other fiscal policy en_US
dc.subject.other monetary regimes en_US
dc.title The Choice of Monetary Regime en_US
dc.type wp en_US
dc.accessionstatus modt25maj05 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Finansiering en_US
dc.contributor.departmentshort FI en_US
dc.contributor.departmentuk Department of Finance en_US
dc.contributor.departmentukshort FI en_US
dc.idnumber 8790705912 en_US
dc.publisher.city København en_US
dc.publisher.year 2005 en_US
dc.title.subtitle Fiscal Implications en_US


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