Monetary and fiscal regimes policy rules in a discrete time model
This paper determines how fiscal policy rule interacts with monetary policy rule affect the conditions of equilibrium determinacy when moving from continuous to discrete time. The monetary authority follows an interest rate-targeting rule while the fiscal authority follows a debt-targeting rule. I...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://journalarticle.ukm.my/19796/ http://journalarticle.ukm.my/19796/1/jeko_522-8.pdf |
| _version_ | 1848814933751365632 |
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| author | Norlin Khalid, |
| author_facet | Norlin Khalid, |
| author_sort | Norlin Khalid, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This paper determines how fiscal policy rule interacts with monetary policy rule affect the conditions of equilibrium
determinacy when moving from continuous to discrete time. The monetary authority follows an interest rate-targeting
rule while the fiscal authority follows a debt-targeting rule. It is shown that the local determinacy of an equilibrium
path is determinate under the active monetary/passive fiscal regime, while the examination of other regimes is shown
to be indeterminate. These findings are in stark contrast with the case of the continuous time model, suggesting that
the timing assumptions play an important role in determining local equilibrium. |
| first_indexed | 2025-11-15T00:41:58Z |
| format | Article |
| id | oai:generic.eprints.org:19796 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:41:58Z |
| publishDate | 2018 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:197962022-09-21T06:48:13Z http://journalarticle.ukm.my/19796/ Monetary and fiscal regimes policy rules in a discrete time model Norlin Khalid, This paper determines how fiscal policy rule interacts with monetary policy rule affect the conditions of equilibrium determinacy when moving from continuous to discrete time. The monetary authority follows an interest rate-targeting rule while the fiscal authority follows a debt-targeting rule. It is shown that the local determinacy of an equilibrium path is determinate under the active monetary/passive fiscal regime, while the examination of other regimes is shown to be indeterminate. These findings are in stark contrast with the case of the continuous time model, suggesting that the timing assumptions play an important role in determining local equilibrium. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19796/1/jeko_522-8.pdf Norlin Khalid, (2018) Monetary and fiscal regimes policy rules in a discrete time model. Jurnal Ekonomi Malaysia, 52 (2). pp. 95-108. ISSN 0127-1962 https://www.ukm.my/jem/issue/v52i2/ |
| spellingShingle | Norlin Khalid, Monetary and fiscal regimes policy rules in a discrete time model |
| title | Monetary and fiscal regimes policy rules in a discrete time model |
| title_full | Monetary and fiscal regimes policy rules in a discrete time model |
| title_fullStr | Monetary and fiscal regimes policy rules in a discrete time model |
| title_full_unstemmed | Monetary and fiscal regimes policy rules in a discrete time model |
| title_short | Monetary and fiscal regimes policy rules in a discrete time model |
| title_sort | monetary and fiscal regimes policy rules in a discrete time model |
| url | http://journalarticle.ukm.my/19796/ http://journalarticle.ukm.my/19796/ http://journalarticle.ukm.my/19796/1/jeko_522-8.pdf |