Monetary policy, neutrality and the environment
TLDR
In this article, the interaction between monetary and fiscal policies in a Ramsey-Sidrauski model augmented with environmental capital is studied through the Green Golden Rule, and the equilibrium solutions are studied through equilibrium solutions through the “Green Golden Rule.Abstract:
We study the interaction between monetary and fiscal policies in a Ramsey-Sidrauski model augmented with environmental capital. Equilibrium solutions are studied through the “Green Golden Rule”. Despite the non-separability of money in utility and intertemporally non-separable preferences, money is environmentally neutral. Policy impacts the environment via the marginal rate of transformation rather than the marginal rate of substitution between consumption and environment. Fiscal policies, lump sum and distortionary, under a balanced budget, are also environmentally non-neutral. Only under a non-balanced budget, when deficits are monetized, is money environmentally non-neutral. In alternative approaches (Cash-in-Advance, Transactions Costs), money is environmentally non-neutral.read more
Citations
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Linear And Nonlinear Programming
TL;DR: The linear and nonlinear programming is universally compatible with any devices to read and is available in the book collection an online access to it is set as public so you can download it instantly.
Book ChapterDOI
Climate Change and Central Banking
Abstract: Is there convincing evidence for us to adjust our monetary policy strategy because increased risks of more frequent and more devastating future climatic events could influence economic dynamics in the medium term, the monetary policy horizon? The non-quantified increased probability and causality in such events may only hold implications for short-term developments, which do not influence the conduct of monetary policy.
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Environment, Growth and Fiscal and Monetary Policies
TL;DR: In this paper, the authors investigated whether monetary and fiscal policies, such as lump-sum taxes and monetization of pubic deficit, have environmental impacts and provided a framework which relates public spending and inflation with environment.
Journal ArticleDOI
Does Monetary Policy Impact Co2 Emissions? A GVAR Analysis
macroeconomic vulnerabilities in the context of low-carbon transition
TL;DR: In this article , the authors propose a framework highlighting how fiscal, monetary, financial, and external dimensions can be integrated to question the robustness of transition dynamics and pinpoint where extra attention should be paid.
References
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The mathematical theory of saving
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Asset Prices Under Habit Formation and Catching Up with the Joneses
Andrew B. Abel,Andrew B. Abel +1 more
TL;DR: In this article, the authors introduce a utility function that nests three classes of utility functions: (1) time-separable utility functions, (2) "catching up with the Joneses" utility functions that depend on the consumer's level of consumption relative to the lagged cross-sectional average level, and (3) utility functions displaying habit formation.
Journal ArticleDOI
A Review of The Stern Review on the Economics of Climate Change
TL;DR: The Stern Review as mentioned in this paper argued that the benefits of strong, early action on climate change outweighs the costs, and the economic analysis supporting this conclusion consists mostly of two basic strands: a formal aggregative model that relies for its conclusions primari- ly upon imposing a very low discount rate.
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The Optimal Depletion of Exhaustible Resources
Partha Dasgupta,Geoffrey Heal +1 more
TL;DR: In this article, the authors explore the problems that arise naturally when the existence of exhaustible resources is incorporated into the study of intertemporal plans, and demonstrate how one might, in a relatively simple manner, bring such considerations to bear on a set of questions that have generated a considerable amount of interest in recent years.
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Habit Formation in Consumption and Its Implications for Monetary Policy Models
TL;DR: This paper explored a monetary policy model with habit formation for consumers, in which consumers' utility depends in part on current consumption relative to past consumption, and found that the responses of both spending and inflation to monetary policy actions are signicantly improved by this modication (JEL D12, E52, E43).