An Exploration of Optimal Stabilization Policy
通过一个两期一般均衡模型，研究货币和财政政策如何最优应对总需求下降，发现其政策建议与传统凯恩斯分析显著不同，并指出“性价比”计算可能误导财政政策福利评估。
This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the welfare of the representative household. Although the model has Keynesian features, its policy prescriptions differ significantly from those of textbook Keynesian analysis. Moreover, the model suggests that the commonly used “bang for the buck” calculations are potentially misleading guides for the welfare effects of alternative fiscal policies.