Greetings to all
I am a beginner student I am working on coordination between fiscal and monetary policy, and I want to find the optimal combination of the two policies that achieve the lowest loss to the economy.
Any directions or help?
My greetings
Hi, I think you cannot do it directly in the mmb. you’ll need to define a loss function and a model. Maybe you could consult Grohé Uribe 2005 on optimal fiscal and monetary policy as a start.