scholarly journals The Implication of Monetary and Fiscal Policy Interactions for the Price Levels: the Fiscal Theory of the Price Level Revisited

2014 ◽  
Author(s):  
Marzieh Assadi
Keyword(s):  
Fiscal Policy ◽  
Price Level ◽  
Policy Interactions ◽  
Price Levels ◽  
Monetary And Fiscal Policy

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.

Interakcje polityki pieniężnej i fiskalnej a niezależność banku centralnego – przegląd możliwych podejść modelowych w badaniach empirycznych

2020 ◽  
Author(s):  
Ryszard Kokoszczyński ◽  
Joanna Mackiewicz-Łyziak
Keyword(s):  
Fiscal Policy ◽  
Price Level ◽  
Empirical Studies ◽  
Central Banks ◽  
Overwhelming Majority ◽  
Monetary Policies ◽  
Sustainable Policy ◽  
Monetary And Fiscal Policy ◽  
Simple Models

There are numerous theoretical and empirical studies on interactions between monetary and fiscal policy. Even if the independence of central banks affects those interactions, it has rarely been directly included in those studies. In this chapter, we present two general approaches to empirical studies on interactions between those two policies and the possibilities for inclusion of independence of central banks in their modelling. Generally, the first approach has poor theoretic background and relies on simple models describing rules for fiscal and monetary policies. Those models also include proxies for some aspects of fiscal policy. Similarly, some simple measures usually address the independence of central banks. The second approach most often roots in the fiscal theory of the price level. The overwhelming majority of presented studies report a significant impact of the central banks’ independence in the form of a more sustainable policy using the first approach.

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