Contact

Send us your feedback

Thank you for your feedback. An email has been sent to the ESRC support team.

An error occured whilst sending your feedback. Please review the problems below.

New Directions in Monetary and Fiscal Policy Analysis at the Macroeconomic Level

Grant reference: RES-062-23-1436

« View grant details

Journal article details

Monetary and fiscal policy interaction : the current consensus assignment in the light of recent developments
In the last few years papers have begun to analyse optimal monetary and fiscal policy in models incorporating nominal rigidities where social welfare is derived from the utility of agents. This article examines whether this analysis provides support for the consensus assignment, where monetary policy controls demand and inflation and fiscal policy controls government debt. We argue that the basic structure of New Keynesian models implies that monetary policy dominates fiscal policy as a means of controlling inflation. No similar dominance appears to operate for fiscal policy and debt, if debt has to return to its initial level after shocks.
10.1111/j.1468-0297.2009.02317.x
English

Primary contributor

Author Tatiana Kirsanova

Additional contributors

Co-author Campbell Leith
Co-author Simon Wren-Lewis

Additional details

119
541
Yes
0013-0133
Blackwell Publishing
01 November 2009
482-496
Oxford
Post-print
The economic journal

Cite this outcome

Harvard

Kirsanova, Tatiana et al (2009) Monetary and fiscal policy interaction : the current consensus assignment in the light of recent developments. The economic journal. 119 (541), pp. 482-496 Oxford: Blackwell Publishing.

Vancouver

Kirsanova Tatiana et al. Monetary and fiscal policy interaction : the current consensus assignment in the light of recent developments. The economic journal 2009; 119 (541): 482-496.