Optimal Fiscal Consolidation Under Frictional Financial Markets
研究货币联盟在资本流动冲击下，财政当局如何在刺激经济与偿还外债之间权衡，发现最优策略是短期降低增值税、提前提高增值税与工资税之和，而非通过政府支出刺激经济。
Abstract This paper studies optimal fiscal policy in a currency union subject to capital flow shocks in an economy with two main ingredients: (i) sticky prices and (ii) financially constrained arbitrageurs. Given capital outflows and high external debt, the fiscal authority faces a trade-off between stimulating the economy or paying off external debt. The planner reduces the value-added tax in the short run, while it raises and front-loads the sum of value-added tax and payroll taxes. It is not optimal to use spending to stimulate the economy. The country engages in a fiscal consolidation, as government debt falls compared with a passive fiscal policy.