Campbell Leith

TL;DR: This article explored the macroeconomic consequences of fiscal consolidation whose timing and composition are uncertain and found that the composition of the fiscal consolidation, its duration, the monetary policy stance, the level of government debt and expectations over the likelihood and composition of fiscal consolidations all matter in determining the extent to which a given consolidation is expansionary and/or successful in stabilizing government debt.

TL;DR: In this article, the authors develop the theory of price-level determination in a range of models using both ad hoc policy rules and jointly optimal monetary and fiscal policies and discuss empirical issues that arise when trying to identify monetary-fiscal regime.

TL;DR: The key analytical finding is that without explicit reference to the level of government debt it is not possible to infer how strongly the monetary and fiscal instruments should be used to ensure determinate equilibrium dynamics.

TL;DR: In this article, the authors consider the nature of the time inconsistency involved in such a policy and its implication for discretionary policymaking and show that governments are tempted, given inflationary expectations, to utilize their monetary and fiscal instruments in the initial period to change the ultimate debt burden they need to service.