Ramon Marimon

Learn More
We propose an integrated treatment of the problems of optimal monetary and fiscal policy, for an economy in which prices are sticky (so that the supplyside effects of tax changes are more complex than in standard fiscal analyses) and the only available sources of government revenue are distorting taxes (so that the fiscal consequences of monetary policy(More)
4 1 Non-technical summary 5 2 Introduction 7 3 Related literature 11 4 The monetary policy problem 12 4.1 Discussion 14 4.1.1 Relation to earlier work 14 4.1.2 Policy instruments 14 4.1.3 How much non-linearity? 15 5 Model calibration 17 7 Optimal policy with lower bound 20 7.1 Optimal policy functions 20 7.2 Dynamic response to real rate shocks 23 7.3(More)
Much of the new growth literature stresses countly characteristics, such as education levels or political stability, as the dominant determinant of growth. However, growth rates are highly unstable over time, with a correlation across decades of .1 to .3, while country characteristics are stable, with cross-decade correlations of .6 to .9. Shocks,(More)
  • Gian Luca Clementi, Berardino Palazzo, +5 authors Ramon Marimon
  • 2010
Do firm entry and exit play a major role in shaping aggregate dynamics? Our answer is yes. Entry and exit amplify and propagate the effects of aggregate shocks. In turn, this leads to greater persistence and unconditional variation of aggregate time series. These results stem from well-documented features of firm dynamics such as pro– cyclical entry and the(More)
We study a general equilibrium model in which entrepreneurs finance investment with optimal financial contracts. Because of enforceability problems, contracts are constrained efficient. We show that limited enforceability amplifies the impact of technological innovations on aggregate output. This implies that economies with lower enforceability of contracts(More)
No part of this working paper may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by information storage or retrieval system, without permission from the Institute. In 1994 the Institute launched a series of Working Papers. The series is intended to convey the preliminary results of our(More)
Inflation and the monetary financing of deficits are analyzed in a model in which the deficit is constrained to be less than a given fraction of a measure of aggregate market activity. Depending on parameter values, the model can have multiple steady states. Under adaptive learning with heterogeneous learning rules, there is convergence to a subset of these(More)
Does an inflation conservative central bank à la Rogoff (1985) remain desirable in a setting with endogenous fiscal policy? To provide an answer we study monetary and fiscal policy games without commitment in a dynamic, stochastic stickyprice economy with monopolistic distortions. Monetary policy determines nominal interest rates and fiscal policy provides(More)