Abstract

CARRANCO GALLARDO, Zorayda  and  VENEGAS-MARTINEZ, Francisco. Políticas fiscal y monetaria óptimas en una economía pequeña y abierta. Prob. Des [online]. 2009, vol.40, n.156, pp.29-46. ISSN 0301-7036.

This study develops a model of a small, open economy, with perfect capital mobility, which makes it possible to examine the actions of the government in the fiscal and monetary areas, compatible with optimal plans in the private sector. The proposed model considers a representative individual with perfect foresight. The key result is that fiscal and monetary policies consistent with the optimal plans of consumers and rational firms should not generate distortions.

Keywords : fiscal policy; monetary policy; joint analysis of fiscal and monetary policies.