The Role of Monetary and Fiscal Policy in the New Neoclassical Models

1978 ◽  
Vol 44 (3) ◽  
pp. 642 ◽  
Author(s):  
Matthew Buford Canzoneri
Keyword(s):  
Fiscal Policy ◽  
Monetary And Fiscal Policy

Monetary and Fiscal Policy in Europe: an Overview

2000 ◽  
Vol 174 ◽  
pp. 63-67 ◽  
Author(s):  
Ray Barrell ◽  
Nigel Pain
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Price Level ◽  
Reference Value ◽  
Medium Term ◽  
Type Representation ◽  
Growth Pact ◽  
The Stability ◽  
Monetary And Fiscal Policy

There are new monetary and fiscal frameworks in place for the countries in the Euro Area. The European Central Bank has a remit to maintain price level stability in the medium term, and it has developed a two pillar strategy, with interest rates being set in relation to a reference value of M3 and general (inflationary) conditions. We discuss an ideal type representation of this framework and examine the potential effects of a fall in the euro. Fiscal policy in Europe is now based on guidelines from the Stability and Growth Pact and we discuss the role of commitment in this framework as well

scholarly journals Integration of Monetary and Fiscal Policy of the Countries of the Visegrad Group

2014 ◽  
Vol 14 (3) ◽  
pp. 197-213
Author(s):  
Stanislav Kappel ◽  
Jan Janků
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Fiscal Policy ◽  
Successful Implementation ◽  
The Czech Republic ◽  
Conflict Situations ◽  
Wide Range ◽  
Monetary And Fiscal Policy ◽  
Visegrad Group

Abstract The aim of this paper is to evaluate mutual interaction of monetary and fiscal policies in the countries of the Visegrad group, i.e. in the Czech Republic, Slovakia, Poland and Hungary. The relationship of monetary and fiscal policy - their coordination, cooperation or mutual antagonism - are basic determinants of successful implementation for economic policy of the state. Fiscal and monetary policies usually have different aims, and some conflict situations may arise in practical economic and political decision- making. Each policy has to make its decision with regard to the other one. Methodical approaches of this contribution are based on the game theory, which deals with the analysis of a wide range of decision situations with more participants (players) and it is primarily focused on the conflict situations. This game-theoretical approach is responsible for creating the theoretical model which is then dealt with in the empirical analysis. We find a distinctly stabilizing role of monetary policy and relatively problematic stabilizing role of fiscal policy in the analyzed countries. The dominant role of monetary policy is statistically confirmed in the case of the Czech Republic and Hungary.

scholarly journals The Impact of the Great Recession on Monetary and Fiscal Policy in Developed Market Economies

2015 ◽  
Vol 6 (1) ◽  
pp. 56-71 ◽  
Author(s):  
Damir Šehović
Keyword(s):  
Fiscal Policy ◽  
Great Recession ◽  
Fiscal Policies ◽  
Market Economies ◽  
The Great Recession ◽  
The Great Depression ◽  
Theoretical Assumptions ◽  
Monetary And Fiscal Policy ◽  
The Impact

Abstract Background: With the occurrence of the crisis in 2007, which caused the largest economic contraction since the Great Depression in the thirties, it has become evident that the previous understanding of strategies, effects and roles of monetary and fiscal policy should be redefined. Objectives: The aim of this paper is to illustrate a possible expected change in monetary and fiscal policy in developed market economies that could occur as a consequence of the Great Recession. Methods/Approach: The paper provides a comparative analysis of various primary economic variables related to the developed OECD countries, as well as the empirical testing of the selected theoretical assumptions. Results: The changes in monetary policy refer to the question of raising target inflation, considering a possible use of aggregate price level targeting and paying attention to the role of central banks in suppressing the formation of an asset bubble. The success of fiscal policy in attaining stabilization depends on the size of possible fiscal measures and creation of automatic stabilizers. Conclusions: For the most part, monetary and fiscal policies will still stay unchanged, although some segments of these policies need to be improved.

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.

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