Simple Macroeconomic Policies and Welfare: A Quantitative Assessment
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.
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| Main Authors: | , |
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| Format: | Digital revista |
| Language: | English |
| Published: |
Fundação Getúlio Vargas
2014
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| Online Access: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402014000300303 |
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