Fiscal Adjustment and Inflation Targeting in Less Developed Countries
研究了欠发达国家中依赖削减基础设施投资来平衡预算时，通胀目标制可能失效的条件，发现当基础设施削减占财政调整的30%至70%且其回报率超过较低阈值时，均衡不再稳定。
Inflation targeting may not be viable in less developed countries (LDCs) where policymakers rely too heavily on cuts in infrastructure investment to balance the budget. Using a mix of analytical and numerical methods, we demonstrate that the equilibrium ceases to be saddle point stable under active policy when infrastructure cuts account for 30–70% of fiscal adjustment and the return on infrastructure exceeds a comparatively low threshold value. The result is robust to the form of the Taylor rule, the degree of real wage flexibility, the initial level of debt, the choice of a balanced‐budget or debt‐targeting rule, and the q ‐elasticity of private investment spending.