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.
- Subgame perfection
- Time consistency
ASJC Scopus subject areas
- Economics and Econometrics
- Political Science and International Relations