Coverart for item
The Resource Is the quantity of government debt a constraint for monetary policy?, Srobona Mitra

Is the quantity of government debt a constraint for monetary policy?, Srobona Mitra

Label
Is the quantity of government debt a constraint for monetary policy?
Title
Is the quantity of government debt a constraint for monetary policy?
Statement of responsibility
Srobona Mitra
Creator
Contributor
Author
Subject
Genre
Language
eng
Summary
This paper derives an interest rate rule for monetary policy in which the interest rate response of the central bank toward an increase in expected inflation falls as debts increase beyond a certain threshold level. A debt-constrained interest rate rule and the threshold level of debt are jointly estimated for Canada during the first decade of its inflation targeting regime of the 1990s. There are three main findings of this paper. First, a high government debt could constrain monetary policy if government spending, rather than taxes, is expected to adjust in future in line with debt service costs. The 'constraint' operates through an altered policy transmission mechanism through changes in the IS curve. Second, the effects of the debt-constraint on monetary policy are quite different during booms and recessions. Third, empirical estimates show that Canadian monetary policy might have been constrained by a high government debt-GDP ratio during the 1990s. Policy was less loose than what inflation indicators called for
Member of
Action
digitized
Cataloging source
CN8ML
http://bibfra.me/vocab/lite/collectionName
IMF eLibrary
http://library.link/vocab/creatorName
Mitra, Srobona
Index
no index present
Language note
English
LC call number
HJ793
LC item number
.M485 2007 ONLINE
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
International Monetary Fund
Series statement
IMF Working Paper,
Series volume
WP/07/62
http://library.link/vocab/subjectName
  • Fiscal policy
  • Monetary policy
  • Economic history
  • Fiscal policy
  • Monetary policy
  • Canada
  • Canada
Label
Is the quantity of government debt a constraint for monetary policy?, Srobona Mitra
Instantiates
Publication
Copyright
Note
  • "March 2007."
  • Cover title
Bibliography note
Includes bibliographical references (pages 21-22)
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Color
multicolored
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
I. Introduction; II. Existing Literature on the Links between Debt and Monetary Policy; III. A Possible Motivation for the Empirics; IV. Joint Estimation of the Threshold Level of Debt and Interest Rate Rule-the Case of Canada; Empirical model; Data; Estimation results; V. Summary and Conclusions; Appendices ; I. Derivation of Optimal Interest Rate Rule Under Discretionary Policy; References; Figures ; 1. Movements in Some Key Variables in Canada Monthly Data, 1991:11 to 2000:12; 2. J-Statistics for Choosing the Threshold level of Debt; Tables
Control code
314190694
Dimensions
unknown
Extent
1 online resource (25 pages)
Form of item
online
Isbn
9781283515542
Issn
2227-8885
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other control number
10.5089/9781451910797.001
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
(OCoLC)314190694
System details
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Label
Is the quantity of government debt a constraint for monetary policy?, Srobona Mitra
Publication
Copyright
Note
  • "March 2007."
  • Cover title
Bibliography note
Includes bibliographical references (pages 21-22)
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Color
multicolored
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
I. Introduction; II. Existing Literature on the Links between Debt and Monetary Policy; III. A Possible Motivation for the Empirics; IV. Joint Estimation of the Threshold Level of Debt and Interest Rate Rule-the Case of Canada; Empirical model; Data; Estimation results; V. Summary and Conclusions; Appendices ; I. Derivation of Optimal Interest Rate Rule Under Discretionary Policy; References; Figures ; 1. Movements in Some Key Variables in Canada Monthly Data, 1991:11 to 2000:12; 2. J-Statistics for Choosing the Threshold level of Debt; Tables
Control code
314190694
Dimensions
unknown
Extent
1 online resource (25 pages)
Form of item
online
Isbn
9781283515542
Issn
2227-8885
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other control number
10.5089/9781451910797.001
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
(OCoLC)314190694
System details
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.

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