(Optimal) Monetary Policy with and without Debt

Boris Chafwehé, Rigas Oikonomou, Romanos Priftis & Lukas Vogel
How should policy be designed at high debt levels, when fiscal authorities have little room to adjust taxes? Assigning the monetary authority a role in achieving debt sustainability makes it less effective in stabilizing inflation and output.

Registration Year

  • 2021
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Resource Types

  • Text
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Affiliations

  • Directorate-General for Economic and Financial Affairs
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  • UniversitĂ© Catholique de Louvain
    1
  • Bank of Canada
    1