Monetary Policy Facing Fiscal Indiscipline under Generalized Timing of Actions
Bibliographic Data
| ID | 24040026 |
|---|---|
| Authors | Jan Libich (0000-0002-2991-2228), Petr Stehlík (0000-0002-4766-4424) |
| Year | 2012 |
| Volume | 168 |
| Issue | 3 |
| Pages | 393-431 |
| Publication date | 2012-01-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Institutional and Theoretical Economics JITE (JOURNAL) |
| Journal identifiers | ISSN: 0932-4569 • E-ISSN: 1614-0559 |
| Publisher | Mohr Siebeck (PUBLISHER) |
| DOI | 10.1628/093245612802920962 |
| OpenAlex | W2074481110 |
| Language | EN |
| References cited | 3 |
The paper analyzes interactions between monetary and fiscal policies, both in a single-country and in a monetary-union setting. As the policy interactions are strategic, we use game-theoretic methods. Specifically, we develop a framework that allows for an arbitrary, possibly stochastic timing of moves. Our analysis identifies a number of institutional and policy variables that influence the interplay and outcomes of monetary and fiscal policies, such as the average levels of inflation and debt, and that determine the likelihood of an unpleasant monetarist arithmetic. We then calibrate the model with European Monetary Union data.
Economics · Fiscal policy · Macroeconomics · Monetary economics · Monetary policy · Economic theories and models · Fiscal Policies and Political Economy · Monetary Policy and Economic Impact
| Highly cited | No |
|---|