NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Stabilizing Expectations under Monetary and Fiscal Policy Coordination

Stefano Eusepi, Bruce Preston

NBER Working Paper No. 14391
Issued in October 2008

---- Acknowledgements -----

The authors thank seminar participants at the Bank of Japan, IGIER Universita Bocconi, the CAMA and Lowey Institute conference on "Fiscal Policy Frameworks", Columbia University, CREI-Universitat Pompeu Fabra, the European Central Bank conference on "Learning, Asset Prices and Monetary Policy", Federal Reserve Bank of New York, Federal Reserve Bank of St Louis "Learning Week", Indiana University, NCER Working Group in Macroeconometics, Riksbank conference on "Refining Monetary Policy: Transparency and Real Stability" and Yale University. Jordi Gali, Mike Woodford and particularly Eric Leeper and our discussants Timothy Kam, Donald Kohn and Frank Smets are thanked for useful conversations and detailed comments. The usual caveat applies. The views expressed in the paper are those of the authors and are not necessarily reflective of views at the Federal Reserve Bank of New York, the Federal Reserve System, or the Natonal Bureau of Economic Research. Preston thanks the Federal Reserve Bank of New York for its hospitality and resources while completing some of this work.

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