The monetary financing of a large fiscal shock

IF 4.3 2区经济学 Q1 BUSINESS, FINANCE

Journal of Monetary Economics Pub Date : 2024-07-14 DOI:10.1016/j.jmoneco.2024.103630

Pedro Teles , Oreste Tristani

引用次数: 0

Abstract

Motivated by the surge in debt levels through the pandemic crisis, we revisit the issue of the optimal financing of public debt. In contrast to existing results, we find that the optimal response of inflation to a large increase in public spending is a gradual, significant and long-lasting rise in inflation. Our conclusion is due to a different assumption on the source of nominal rigidities. While the literature has focused on sticky prices, of either the Calvo (1983) or Rotemberg (1982) type, we consider sticky plans as in the sticky information set up of Mankiw and Reis (2002). A crucial feature of our results is that a significant inflation response is desirable if the maturity of public debt is (realistically) long.

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大规模财政冲击的货币融资

受大流行病危机导致债务水平激增的影响，我们重新审视了公共债务的最佳融资问题。与现有结果不同的是，我们发现通胀对公共开支大幅增加的最佳反应是通胀的逐步、显著和持久上升。我们的结论源于对名义刚性来源的不同假设。文献关注的是卡尔沃（1983 年）或罗腾伯格（1982 年）类型的粘性价格，而我们考虑的是曼基和雷斯（2002 年）的粘性信息中的粘性计划。我们的研究结果的一个重要特征是，如果公共债务的期限（现实地）较长，那么显著的通货膨胀反应是可取的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Monetary Economics Multiple-

CiteScore

7.20

自引率

4.90%

发文量

审稿时长

74 days

期刊介绍： The profession has witnessed over the past twenty years a remarkable expansion of research activities bearing on problems in the broader field of monetary economics. The strong interest in monetary analysis has been increasingly matched in recent years by the growing attention to the working and structure of financial institutions. The role of various institutional arrangements, the consequences of specific changes in banking structure and the welfare aspects of structural policies have attracted an increasing interest in the profession. There has also been a growing attention to the operation of credit markets and to various aspects in the behavior of rates of return on assets. The Journal of Monetary Economics provides a specialized forum for the publication of this research.