Ambiguity in American monetary and fiscal policy

Thomas J. Sargent

    Research output: Contribution to journalArticlepeer-review


    Macroeconomic models of all stripes incorporate descriptions of fiscal policy as explicit history-contingent plans. Relative to those ideal descriptions, American fiscal policy today is ambiguous. This short paper, the text of a lunch time talk, describes how American fiscal policy has been ambiguous since the birth of the Republic and how some past ambiguities were resolved.

    Original languageEnglish (US)
    Pages (from-to)324-330
    Number of pages7
    JournalJapan and The World Economy
    Issue number3
    StatePublished - Aug 2006


    • Ambiguity
    • Subgame perfection
    • Sustainability
    • Time consistency

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics
    • Political Science and International Relations


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