Interactions of Monetary and Fiscal Policy via Open Market Operations  

Oleh:

Schabert, Andreas

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 114 no. 494 (Mar. 2004), page C186-C206.
Topik: FISCAL POLICY; monetary; fiscal policy; open market
Fulltext: C186.pdf (174.13KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.13 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

We examine interactions of monetary and fiscal policy in a sticky price model where public debt is non - neutral, as it provides transaction services. This property is brought about by a legal restriction on open market operations by which only government bonds are eligible. Debt creation eases access to money and can therefore induce households to increase purchases of goods. Government expenditures, which are not completely tax financed, and deficit financed tax cuts then tend to stimulate private consumption. However, for these fiscal impulses to raise real activity monetary policy should not too aggressively aim at stabilising the economy.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali