Details

Autor(en) / Beteiligte

• Ida, Daisuke
• Kaminoyama, Kenichi

Titel

Progressive taxation and optimal monetary policy in a two‐country new Keynesian model

Ist Teil von

• International finance (Oxford, England), 2023, Vol.26 (3), p.260-285

Ort / Verlag

Oxford: Blackwell Publishing Ltd

Erscheinungsjahr

2023

Quelle

Business Source Ultimate【Trial: -2024/12/31】【Remote access available】

Beschreibungen/Notizen

• This paper examines the effect of tax progressivity on optimal monetary policy in a two‐country new Keynesian model. We first address the issue that coefficients in both structural equations and the central bank's loss function are crucially affected by a change in tax progressivity in both countries. Second, we show that a change in tax progressivity significantly affects the properties of international monetary policy transmission. Third, we demonstrate that the impact of tax progressivity on international monetary policy transmission depends on the value of the constant relative risk‐aversion coefficients.