Monetary and fiscal policy mix in a small open economy
The case of Croatia
Bibliographic Data
| ID | 15067004 |
|---|---|
| Authors | Tomislav Ćorić (0000-0002-4396-2491, University of Zagreb), Hrvoje Šimović (0000-0002-4040-0899, University of Zagreb, corresponding author), Milan Deskar-Škrbić (0000-0002-7611-2071, Croatian National Bank) |
| Year | 2015 |
| Volume | 28 |
| Issue | 1 |
| Pages | 407-421 |
| Publication date | 2015-01-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economic Research-Ekonomska Istraživanja (JOURNAL) |
| Journal identifiers | ISSN: 1331-677X • E-ISSN: 1848-9664 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/1331677x.2015.1059073 |
| OpenAlex | W1594096971 |
| Language | EN |
| Citations received | 3 |
| References cited | 12 |
In this article we use a structural vector autoregression (VAR) model to analyse the possibilities of monetary and fiscal policy in achieving main economic policy goals, namely price stability and economic growth, in Croatia from 2004 to 2012. Our main results indicate that expansionary monetary and fiscal policies both have positive effects on economic activity. On the other hand, fiscal expansion leads to nominal exchange rate appreciation while monetary expansion has depreciation effects on nominal exchange rate. Thus the main conclusion of the article is that coordinated measures of monetary and fiscal policies could achieve both goals, i.e. that fiscal and monetary authorities can stimulate economic growth without endangering price stability
Economics · Exchange rate · Fiscal policy · Macroeconomics · Market economy · Monetary economics · Monetary policy · Policy mix · Price of stability · Vector autoregression · Fiscal Policies and Political Economy · Market Dynamics and Volatility · Monetary Policy and Economic Impact
| Citations per year | 0.43 |
|---|---|
| Citation span | 2019 - 2022 (4) |
| Highly cited | No |