{"title":"有抵押品约束的最优财政和货币政策","authors":"Qingqing Cao","doi":"10.1016/j.jedc.2024.104825","DOIUrl":null,"url":null,"abstract":"<div><p>We study the Ramsey optimal fiscal and monetary policy in an economy where banks face collateral constraints. Inflation reduces the net worth of banks and tightens their collateral constraint by revaluing their nominal assets and liabilities. The optimal policy balances tax distortions with the costs of inflation on banks, thereby deviating from perfect tax smoothing. Our quantitative analysis reveals that inflation plays a much smaller role in financing fiscal needs in the optimal policy compared to existing literature. When considering price stickiness and long-term government debt, optimal inflation is modest and persistent, and the role of inflation in fiscal financing increases with the maturity of government debt.</p></div>","PeriodicalId":48314,"journal":{"name":"Journal of Economic Dynamics & Control","volume":null,"pages":null},"PeriodicalIF":1.9000,"publicationDate":"2024-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Optimal fiscal and monetary policy with collateral constraints\",\"authors\":\"Qingqing Cao\",\"doi\":\"10.1016/j.jedc.2024.104825\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<div><p>We study the Ramsey optimal fiscal and monetary policy in an economy where banks face collateral constraints. Inflation reduces the net worth of banks and tightens their collateral constraint by revaluing their nominal assets and liabilities. The optimal policy balances tax distortions with the costs of inflation on banks, thereby deviating from perfect tax smoothing. Our quantitative analysis reveals that inflation plays a much smaller role in financing fiscal needs in the optimal policy compared to existing literature. When considering price stickiness and long-term government debt, optimal inflation is modest and persistent, and the role of inflation in fiscal financing increases with the maturity of government debt.</p></div>\",\"PeriodicalId\":48314,\"journal\":{\"name\":\"Journal of Economic Dynamics & Control\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":1.9000,\"publicationDate\":\"2024-01-30\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Journal of Economic Dynamics & Control\",\"FirstCategoryId\":\"96\",\"ListUrlMain\":\"https://www.sciencedirect.com/science/article/pii/S0165188924000174\",\"RegionNum\":3,\"RegionCategory\":\"经济学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q2\",\"JCRName\":\"ECONOMICS\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Economic Dynamics & Control","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0165188924000174","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
Optimal fiscal and monetary policy with collateral constraints
We study the Ramsey optimal fiscal and monetary policy in an economy where banks face collateral constraints. Inflation reduces the net worth of banks and tightens their collateral constraint by revaluing their nominal assets and liabilities. The optimal policy balances tax distortions with the costs of inflation on banks, thereby deviating from perfect tax smoothing. Our quantitative analysis reveals that inflation plays a much smaller role in financing fiscal needs in the optimal policy compared to existing literature. When considering price stickiness and long-term government debt, optimal inflation is modest and persistent, and the role of inflation in fiscal financing increases with the maturity of government debt.
期刊介绍:
The journal provides an outlet for publication of research concerning all theoretical and empirical aspects of economic dynamics and control as well as the development and use of computational methods in economics and finance. Contributions regarding computational methods may include, but are not restricted to, artificial intelligence, databases, decision support systems, genetic algorithms, modelling languages, neural networks, numerical algorithms for optimization, control and equilibria, parallel computing and qualitative reasoning.