Does the Timing of the Cash-in-Advance Constraint Matter for Optimal Fiscal and Monetary Policy?
University of Maryland
Cash-in-advance model with cash goods and credit goods, comparing Lucas-Stokey/Chari-Christiano-Kehoe timing versus Svensson timing for optimal fiscal and monetary policy
linear-in-labor production technology with TFP shocks, perfect competition
Table 2
Svensson timing with only government spending shocks - zero inflation variability