English, Article, Journal or magazine article edition: Public investment, distortionary taxes and monetary policy transparency Dai, Meixing; Sidiropoulos, Moïse

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Bookmark: http://trove.nla.gov.au/version/122667
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Public investment, distortionary taxes and monetary policy transparency
Author
  • Dai, Meixing
  • Sidiropoulos, Moïse
Physical Description
  • preprint
Notes
  • In a two-period model with distortionay tax and public investment, we reexamine the interaction between monetary policy transparency and fiscal bias. We find that the optimal decisions of tax and public investment allow eliminating the effects of fiscal bias and hence neutralizing the impact of monetary policy opacity (lack of political transparency) on the level and variability of inflation and output, independently of institutional quality. Our results are robust under alternative game structures between the private sector, the government and the central bank.
  • bank transparency; distortionay tax; public investment; fiscal bias
  • RePEc:pra:mprapa:15858
Language
  • English
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