Is the Quantity of Government Debt a Constraint for Monetary Policy?
Publisher: International Monetary Fund
Subject: centralne banke | javni dolg | monetarna politika | interest rate | central banks | Kanada | public debt | inflacija | inflation | ekonomska politika | monetary policy | gross domestic product | bruto domači proizvod | Canada | economic policy | Canada;Public debt;Government debt;Monetary policy;Interest rates;Interest Rate Rule, inflation, central bank, inflation rate, real interest rate, | obrestna mera
This paper derives an interest rate rule for monetary policy in which the interest rate response of the central bank toward an increase in expected inflation falls as debts increase beyond a certain threshold level. A debt-constrained interest rate rule and the threshol... View more