Government Spending and the Taylor Principle
研究政府规模如何影响新凯恩斯经济中均衡不确定性的范围，发现较高的公共消费水平可能使泰勒原理失效，导致均衡不唯一，除非公共消费替代私人消费。
This paper explores how government size affects the scope for equilibrium indeterminacy in a New Keynesian economy, where part of the population live hand‐to‐mouth. The main result is that a higher level of public consumption is likely to generate indeterminacy and render the Taylor principle insufficient as criterion for equilibrium uniqueness. This holds even though fiscal policy serves to reduce swings in current income. Only if government consumption is a substitute for private consumption, will it narrow the scope for indeterminacy. Hence monetary policy should be conducted with an eye to the amount and composition of government consumption.