Unconventional fiscal policy at the zero bound
By: Isabel Correia ... [et al.].
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16758; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16758.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "When the zero lower bound on nominal interest rates binds, monetary policy cannot provide appropriate stimulus.  We show that in the standard New Keynesian model, tax policy can deliver such stimulus at no cost and in a time-consistent manner.  There is no need to use inefficient policies such as wasteful public spending or future commitments to inflate.  We conclude that in the New Keynesian model, the zero bound on nominal interest rates is not a relevant constraint on both fiscal and monetary policy"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 5/5/2011.

Includes bibliographical references.

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