Monetary and Fiscal Interaction with Various Degrees of Commitment
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23520%2F14%3A43921919" target="_blank" >RIV/49777513:23520/14:43921919 - isvavai.cz</a>
Result on the web
<a href="http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=bad01d57-95e8-49ed-9603-ea8185b0fa6f%40sessionmgr115&vid=2&hid=125" target="_blank" >http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=bad01d57-95e8-49ed-9603-ea8185b0fa6f%40sessionmgr115&vid=2&hid=125</a>
DOI - Digital Object Identifier
—
Alternative languages
Result language
angličtina
Original language name
Monetary and Fiscal Interaction with Various Degrees of Commitment
Original language description
Well before the global financial crisis, the long-term trend in fiscal policy had raised concerns about risks for the outcomes of monetary policy. Are fears of an unpleasant monetarist arithmetic justified? To provide some insights, this paper examines strategic fiscal-monetary interactions in a novel game-theory framework with asynchronous timing of moves. It generalizes the standard commitment concept of Stackelberg leadership by making it dynamic. By letting players move with a certain fixed frequency, this framework allows policies to be committed or rigid for different periods of time. We find that the inferior non-Ricardian (active fiscal, passive monetary) regime can occur in equilibrium, and that this is more likely in a monetary union due to free-riding. The bad news is that, unlike under the static commitment of Sargent and Wallace (1981), this may happen even if monetary policy acts as leader for longer periods of time than fiscal policy. The good news is that under some cir
Czech name
—
Czech description
—
Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—
Result continuities
Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
FINANCE A UVER-CZECH JOURNAL OF ECONOMICS AND FINANCE
ISSN
0015-1920
e-ISSN
—
Volume of the periodical
64
Issue of the periodical within the volume
1
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
28
Pages from-to
2-29
UT code for WoS article
—
EID of the result in the Scopus database
—