Simple Macroeconomic Policies and Welfare: A Quantitative Assessment

Revista Brasileira de Economia

Eurilton Araújo¹  Alexandre B. Cunha¹ 

关键词: Optimal Policy;    Business Cycles;    Welfare;   

DOI  :  10.1590/S0034-71402014000300001

来源: SciELO

【 摘 要 】

We quantitatively compare three macroeconomic policies in a cash-credit goods framework. The policies are: the optimal one; another one that fully smoothes out oscillations in output; and a simple one that prescribes constant values for tax and monetary growth rates. As often found in the related literature, the welfare gains or losses from changing from a given policy to another are small. We also show that the simple policy dominates the one that leads to constant output.

【 授权许可】

CC BY   
 All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License