scholarly journals Discretionary Policy Interactions and the Fiscal Theory of the Price Level: A SVAR Analysis on French Data

2012 ◽  
Author(s):  
Jérôme Creel ◽  
Paola Monperrus-Veroni ◽  
Francesco Saraceno
Keyword(s):  
Price Level ◽  
Policy Interactions

Paper Money

2013 ◽  
Vol 103 (2) ◽  
pp. 563-584 ◽  
Author(s):  
Christopher A Sims
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Central Bank ◽  
Sovereign Debt ◽  
Price Level ◽  
Balance Sheets ◽  
Policy Interactions ◽  
Paper Money ◽  
Bank Balance Sheets

Drastic changes in central bank operations and monetary institutions in recent years have made previously standard approaches to explaining the determination of the price level obsolete. Recent expansions of central bank balance sheets and of the levels of richcountry sovereign debt, as well as the evolving political economy of the European Monetary Union, have made it clear that fiscal policy and monetary policy are intertwined. Our thinking and teaching about inflation, monetary policy, and fiscal policy should be based on models that recognize fiscal-monetary policy interactions. (JEL E31, E52, E58, E62, H63)

scholarly journals Monetary and fiscal policy interactions in Brazil: an application of the fiscal theory of the price level

2005 ◽  
Vol 35 (4) ◽  
pp. 657-685 ◽  
Author(s):  
Marcelo Ladeira Fialho ◽  
Marcelo Savino Portugal
Keyword(s):  
Price Level ◽  
Impulse Response Functions ◽  
Fiscal Policies ◽  
Vector Autoregressive ◽  
Policy Interactions ◽  
Monetary Regime ◽  
Fiscal Dominance ◽  
Macroeconomic Coordination ◽  
Primary Surplus ◽  
Monetary And Fiscal Policy

The aim of the present paper is to verify the predominance of a monetary or fiscal dominance regime in Brazil in the post-Real period. The analysis is based on a model proposed by Canzoneri, Cumby and Diba (2000). This model proposes that there is a relationship between the public debt/GDP and primary surplus/GDP series by using the vector autoregression (VAR) framework and analyzing the impulse response functions. Another aim is the extension of the article written by Muscatelli et al. (2002) about the interactions between monetary and fiscal policies using the Markov-switching vector autoregressive model (MS-VAR) introduced by Krolzig (1997), since the relationship between these policies may not be constant over time. In conclusion, the macroeconomic coordination between monetary and fiscal policies in Brazil was virtually a substitute policy throughout the study period, with a predominantly monetary regime, in opposition to the non-Ricardian policies of the Fiscal Theory of The Price Level.

Monetary and Fiscal Policy Interactions

2016 ◽  
pp. 447-473 ◽  
Author(s):  
Asuman Oktayer ◽  
Nagihan Oktayer
Keyword(s):  
Fiscal Policy ◽  
Price Level ◽  
Empirical Test ◽  
Testing Procedure ◽  
Point Of View ◽  
Bounds Testing ◽  
Financial Policies ◽  
Policy Interactions ◽  
Monetary And Fiscal Policy

While the role of fiscal policy in price level determination was neglected by the conventional theory, a new point of view was adapted by the Fiscal Theory of the Price Level. In the context of the new theory, monetary and fiscal policy interactions were taken into account and the role of fiscal policy was underlined. This paper investigates the monetary and fiscal policy coordination in Turkey during the period 1989.1-2012.2 and sub-periods 1989.1-2001.1 and 2001.2-2012.2. In order to reveal if financial policies are monetary dominant or fiscal dominant in aforementioned periods, bounds testing procedure is applied by using quarterly data. While the empirical test results related to the entire period of 1989.1-2012.2 and sub-period of 1989.1-2001.1 indicate fiscal policy dominant regime, the findings regarding 2001.2-2012.2 imply monetary policy dominant regime in Turkey.

Impact of Price Level Changes in Indian Commodity Market

2012 ◽  
Vol 3 (4) ◽  
pp. 124-127
Author(s):  
Dr. G. SELVALAKSHMI Dr. G. SELVALAKSHMI ◽  
◽  
Dr.A.ARUMUGAM Dr.A.ARUMUGAM
Keyword(s):  
Price Level ◽  
Commodity Market

Pakistan's Export Possibilities

1973 ◽  
Vol 12 (1) ◽  
pp. 1-30
Author(s):  
Syed Nawab Haider Naqvi
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Policy Maker ◽  
Time Horizon ◽  
Price Level ◽  
Balance Of Payments ◽  
Domestic Saving ◽  
Trade Offs ◽  
High Level

The recent uncertainties about aid flows have underscored the need for achieving an early independence from foreign aid. The Perspective Plan (1,965-85) had envisaged the termination of Pakistan's dependence on foreign aid by 1985. However, in the context of West Pakistan alone the time horizon can now be advanced by several years with considerable confidence in its economy to pull the trick. The difficulties of achieving independence from foreign aid can be seen by reference to the fact that aid flows make it possible for the policy-maker to pursue such ostensibly incompatible objectives as a balance in international payments (i.e., foreign aid finances the balance of payments), higher rates of economic growth (Lei, it pulls up domestic saving and investment levels), a high level of employment (i.e., it keeps the industries working at a fuller capacity than would otherwise be the case), and a reasonably stable price level (i.e., it lets a higher level of imports than would otherwise be possible). Without aid, then a simultaneous attainment of all these objectives at the former higher levels together with the balance in foreign payments may become well-nigh impos¬sible. Choices are, therefore, inevitable not for definite places in the hierarchy of values, but rather for occasional "trade-offs". That is to say, we will have to" choose how much to sacrifice for the attainment of one goal for the sake of somewhat better realization of another.

Sign in / Sign up

Export Citation Format

Share Document