Debt stabilisation and dynamic interaction between monetary and fiscal policy: In medio stat virtus

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F23%3A10251334" target="_blank" >RIV/61989100:27510/23:10251334 - isvavai.cz</a>

Result on the web

<a href="https://www.sciencedirect.com/science/article/pii/S1007570422004671?via%3Dihub" target="_blank" >https://www.sciencedirect.com/science/article/pii/S1007570422004671?via%3Dihub</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.cnsns.2022.106980" target="_blank" >10.1016/j.cnsns.2022.106980</a>

Result language

angličtina

Original language name

Debt stabilisation and dynamic interaction between monetary and fiscal policy: In medio stat virtus

Original language description

Recent literature has focused on studying how fiscal and monetary authorities in a monetary union can interact during a debt stabilisation process. This literature shows that only exogenous shocks or differences among countries determine deviations from the target level of macroeconomic variables in the steady state equilibrium. This paper aims to reformulate such modelling in a time setting, assuming that policy authorities do not coordinate and cannot perfectly predict the decisions made by their counterpart. This paper shows that simple decision processes driven by the best response mechanism or adaptive expectations do not guarantee convergence to steady-state equilibrium. Instead, persistent fluctuations in the level of macroeconomic variables and policy instruments may emerge if the relative weight given by the fiscal authority to the components of its objective function, namely, debt stability and output stability, is too unbalanced. (C) 2022 Elsevier B.V.

Czech name

—

Czech description

—

Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50200 - Economics and Business

Project

<a href="/en/project/GA20-16701S" target="_blank" >GA20-16701S: Hybrid Evolutionary Games and Economic Applications</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Communications in Nonlinear Science and Numerical Simulation

ISSN

1007-5704

e-ISSN

1878-7274

Volume of the periodical

118

Issue of the periodical within the volume

April

Country of publishing house

NL - THE KINGDOM OF THE NETHERLANDS

Number of pages

13

Pages from-to

106980

UT code for WoS article

000994465100001

EID of the result in the Scopus database

2-s2.0-85142395095