Optimal Monetary and Fiscal Policy for Small Open and Emerging Economies

dc.contributor.advisor	Rubio-Ramírez, Juan F
dc.contributor.author	Fasolo, Angelo Marsiglia
dc.date.accessioned	2010-05-10T19:54:07Z
dc.date.available	2010-05-10T19:54:07Z
dc.date.issued	2010
dc.department	Economics
dc.description.abstract	This dissertation computes the optimal monetary and fiscal policy for small open and emerging economies in an estimated medium-scale model. The model departs from the conventional approach as it encompasses all the major nominal and real rigidities normally found in the literature in a single framework. After estimating the model using Bayesian techniques for one small open economy and one emerging economy, the Ramsey solution for the optimal monetary and fiscal policy is computed. Results show that foreign shocks have a strong influence in the dynamics of emerging economies, when compared to the designed optimal policy for a developed small open economy. For both economies, inflation is low, but very volatile, while taxes follow the traditional results in the literature with high taxes over labor income and low taxes for capital income.
dc.identifier.uri	https://hdl.handle.net/10161/2292
dc.language.iso	en_US
dc.subject	Economics, General
dc.subject	Economics, Theory
dc.subject	DSGE
dc.subject	Emerging economies
dc.subject	Fiscal policy
dc.subject	Monetary policy
dc.subject	Ramsey problem
dc.title	Optimal Monetary and Fiscal Policy for Small Open and Emerging Economies
dc.type	Dissertation

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