[cid:image002.png@01D1940E.3B4E3850][cid:image003.png@01D1940E.3B4E3850] JOINT VIENNA MACROECONOMICS SEMINAR INVITATION R E M I N D E R The Joint Vienna Institute and the Department of Economics and Finance at the Institute for Advanced Studies cordially invite you to the following Joint Vienna Macroeconomics Seminar <http://www.ihs.ac.at/vienna/resources/Economics/Papers/20130226_Paper_Zimmermann.pdf> Tuesday, April 12, 2016 Institute for Advanced Studies Josefstädter Straße 39, 1080 Vienna Lecture Room E02, ground floor 5:00 pm Luisa<http://cfi.epfl.ch/page-40442.html> Lambertini<http://cfi.epfl.ch/page-40442.html> EPFL, Lausanne Monetary Commitment and the Level of Public Debt<http://www.ihs.ac.at/index.php?eID=tx_nawsecuredl&u=0&g=0&t=1460474238&hash=509a91e6bc18924b5a9b4ac03385add95e20ad9e&file=/fileadmin/public/ecofin_teaching/user_upload/JVM_20160412_Luisa_Lambertini.pdf> Abstract: We analyze the interaction between committed monetary and discretionary fiscal policy in a model with public debt, endogenous government expenditure, distortive taxation, and nominal rigidities. Fiscal decisions lack commitment but are Markov-perfect. Monetary commitment to an interest-rate path leads to a unique level of debt. This level of debt is positive if the central bank adopts closed-loop strategies that raise the real rate when inflation is above target due to fiscal deviations; more aggressive defense of the inflation target implies lower debt and higher welfare. Simple Taylor-type interest-rate rules achieve welfare levels similar to sophisticated closed-loop strategies. paper jointly with Stefano Gnocchi We are looking forward to seeing you! Institute for Advanced Studies Josefstädter Straße 39, 1080 Vienna, Austria Tel.: +43 1 599 91 145 e-Mail: economics@ihs.ac.at<mailto:economics@ihs.ac.at> http://economics.ihs.ac.at<http://economics.ihs.ac.at/> LINKS DIRECTIONS TO IHS on Google maps<https://www.google.at/maps/place/Institut+f%C3%BCr+H%C3%B6here+Studien/@48.2096845,16.3476134,15z/data=!4m2!3m1!1s0x0:0x86d55731043062b7> JOINT VIENNA MACRO SEMINAR<https://www.google.com/calendar/embed?src=6h1m59s6inkmo4ppa30s4itb6k%40group.calendar.google.com&ctz=Europe/Vienna> on Google calendar<https://www.google.com/calendar/embed?src=6h1m59s6inkmo4ppa30s4itb6k%40group.calendar.google.com&ctz=Europe/Vienna> ECONOMICS SEMINARS <https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> IN VIENNA<https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> on Google calendar<https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> [cid:image008.jpg@01CEA8B6.39ACE730]<http://economics.ihs.ac.at/> [JVI_2011]<http://www.jvi.org/> [http://www.ihs.ac.at/vienna/resources/Economics/Others/twitter-bird-white-on-blue.png]<https://twitter.com/IHS_Vienna>Institute for Advanced Studies @IHS_Vienna<https://twitter.com/IHS_Vienna> Diese Zusendung erfolgt entsprechend den Bestimmungen des TKG 247107. Sollten Sie keine weiteren Zusendungen wuenschen, senden Sie uns bitte eine kurze Mitteilung an: economics@ihs.ac.at<mailto:economics@ihs.ac.at>. If you do not want to receive our mailings please send an e-mail to: economics@ihs.ac.at<mailto:economics@ihs.ac.at>. Also sent to noeg-l@wu.ac.at<mailto:noeg-l@wu.ac.at> (https://mailman.wu.ac.at/mailman/listinfo/noeg-l.)