Strategic Monetary-Fiscal Interactions in a Downturn

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F15%3A86095243" target="_blank" >RIV/61989100:27510/15:86095243 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Strategic Monetary-Fiscal Interactions in a Downturn
Original language description
Very diverse responses of monetary and fiscal policies have been observed around the world in the post global financial crisis period of 2010-2014. While some countries implemented various mixes of monetary and/or fiscal stimuli, others have seen austerity. Our paper explores (i) whether the strategic interaction between the central bank and government can shed some light on this diversity, and (ii) what lessons about the institutional design of the two policies can be learnt from it. This is done by mapping a reduced-form New Keynesian model into a generalized game theoretic framework with deterministic and stochastic revisions of policy actions. Our focus is on the short-term policy interaction regarding stabilization of an adverse shock (rather thanlong-term issues related to fiscal sustainability and unpleasant monetarist arithmetic). Particular attention is paid to the effect of institutional and structural features such as inflation targeting, monetary and fiscal implementation
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Project
Result was created during the realization of more than one project. More information in the Projects tab.
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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