Working Paper

Dynamic optimal fiscal and monetary policy in a business cycle model with income redistribution

Abstract: An estimation of an optimal program of distortionary taxes, money growth, and borrowing to finance a stream of expenditures based on a real business cycle model in which distribution issues between the rich and poor play a fundamental role in policy decisions.

Keywords: Business cycles; Monetary policy; Income distribution;

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 1993

Number: 9308