; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Pareto Improving Fiscal and Monetary Policies: Samuelson in the New Keynesian Model"; ; "kate.s.hansel@mpls.frb.org"; ; ; "Federal Reserve Bank of Minneapolis"; "E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General", "E40 - Money and Interest Rates: General", "E30 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)"; "This paper explores the positive and normative consequences of government bond issuances in a New Keynesian model with heterogeneous agents, focusing on how the stock of government bonds affects the cross-sectional allocation of resources in the spirit of Samuelson (1958). We characterize the Pareto optimal levels of government bonds and the associated monetary policy adjustments that should accompany Pareto-improving bond issuances. The paper introduces a simple phase diagram to analyze the global equilibrium dynamics of inflation, interest rates, and labor earnings in response to changes in the stock of government debt. The framework also provides a tractable tool to explore the use of fiscal policy to escape the Effective Lower Bound (ELB) on nominal interest rates and the resolution of the “forward guidance puzzle.” A common theme throughout is that following the monetary policy guidance from the standard Ricardian framework leads to excess fluctuations in income and inflation."^^; "2023-06-16"; "2023-06-16T16:32:57.843408883+00:00"^^; "https://doi.org/10.21034/sr.646"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2023-06-16T16:43:27.612051512+00:00"^^; "Research Paper"; "4", "22", "33"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "646"; "Inflation", "Ricardian Equivalence", "Heterogeneous agents", "Government debt"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; ; "Publication" . ; .