How and for whose benefit the European Central Bank (ECB) will work is the most important
issue facing Europe, and has been the subject of vast media and academic interest which …

In this article, we analyze the implications of price-setting restrictions for the conduct of
cyclical fiscal and monetary policy. We consider standard monetary economies that differ in …

It is shown that accounting for technology variations, across households and periods, is
important to obtain theoretically consistent estimates of the demand for currency. An …

We determine the second best rule for the inflation tax in monetary general equilibrium
models where money is dominated in rate of return. The results in the literature are …

The Friedman rule is a feature of optimal policies in several monetary models. However, if
the Ramsey planner does not have access to a complete set of tax instruments, then that …

Tax collection costs have been advocated in the literature as a reason to deviate from the
Friedman rule, in standard general equilibrium monetary models with flexible prices. This …

This paper describes a New Keynesian model incorporating transactions‐facilitating money
and a time‐to‐build constraint into endogenous capital accumulation. The calibrated New …

We study optimal monetary and fiscal policy in the presence of informal activities and tax
evasion in a cash-and-credit model where identical households are audited to determine …

The optimal inflation tax is computed in monetary models where money is costly to supply.
The models are simple general equilibrium models with money in the utility function or a …

We calculate the effects of an increase in government spending financed with labor income
taxes or inflation. We take into account the costs of financial services and the endogenous …