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| Montserrat Feré and Carolina Manzano |
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| ''Fiscal disciplining effect of central bank opacity: Stackelberg versus Nash equilibrium [Comment]'' |
| ( 2024, Vol. 44 No.4 ) |
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| In contrast to Dai and Sidiropoulos (2011), we show that the fiscal
disciplining effect associated with central bank opacity about the central's
political preference parameter present in a Stackelberg equilibrium is never
observed in a Nash equilibrium. |
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| Keywords: Distortionary taxes, output distortions, central bank transparency (opacity), fiscal disciplining effect. |
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General |
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| Manuscript Received : Apr 11 2024 | | Manuscript Accepted : Dec 30 2024 |
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