Download or read book Essays on the effects of fiscal and monetary policy written by Jesper Lindé and published by . This book was released on 1999 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Monetary and Fiscal Policy Interactions in Small Open Economies written by Thitima Chucherd and published by . This book was released on 2013 with total page 474 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis addresses interactions between monetary and fiscal policies in a theoretical dynamic stochastic general equilibrium (DSGE) model of a small open economy and in an empirical model under a structural vector error correction model (SVECM). The thesis consists of three essays. The contribution is both theoretical and empirical that enables a better understanding of the complexity of interactions between monetary and fiscal policies in small open economies. The first essay examines the equilibrium determinacy under monetary and fiscal rules. The goal is to investigate how monetary and fiscal policy interactions ensure a unique and non-explosive (determinate) equilibrium for a small open economy. The study focuses when policy makers implement a set of policy mixes to address domestic output price inflation control for monetary policy, debt stabilization for fiscal policy, and joint output stabilization tasks. The result indicates that two policy schemes facilitate a determinate equilibrium. First, monetary policy actively controls inflation when fiscal policy sets a sufficient feedback on debt. Second, monetary policy becomes passive against inflation when fiscal policy is insolvent. Adding output stabilization to each rule simply causes variants of this fundamental. An interest rate rule with output stabilization can be more passive against inflation while providing a stronger response to the output gap. Fiscal policy is required to set higher feedback on debt along with its stronger counter-cyclical policy. The second essay links between the equilibrium determinacy and policy optimization. This essay provides insights into the design of policy mixes and compares determinacy outcomes between two theoretical models of a small open economy: with and without an explicit exchange rate role. This study shows that policy interactions in a small open economy with an endogenous exchange rate is quite sophisticated, especially when a monetary rule is added with an output stabilization task and/or targeted to Consumer Price Index (CPI) inflation. Additional concern for monetary policy in an open economy causes a partial offset to its reaction on domestic output price inflation that weakens its effect on the real debt burden. To minimize economic fluctuations, policy makers should mute the role of output stabilization for monetary policy, and set minimum feedback on debt that is compatible with the degree of counter-cyclical fiscal policy. Substantially active response to inflation is satisfactory for monetary policy with CPI inflation targeting. The third essay empirically presents monetary and fiscal policy interactions in Thailand's SVECM suggested by a theoretical DSGE model developed from the previous essays. This essay shows that the DSGE-SVECM model can be supported by Thai data. A shock to monetary policy is effective with a lag. Government spending policy is also effective with a lag and some crowding-out effects on output. An adverse shock in tax policy unexpectedly stimulates the economy, indicating room for enhancing economic growth by relaxing revenue constraint. Monetary policy is mainly implemented to correct a consequence of a fiscal shock on inflation (and also the domestic and foreign shocks), while fiscal policy appears to counter a consequence of the monetary policy shock on output.

Download or read book Essays in Fiscal and Monetary Policy written by Michael J. Artis and published by Oxford ; New York : Oxford University Press. This book was released on 1981 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compilation of essays on design, measurement and effects of fiscal policy and monetary policy in the UK - using econometric models, analyses short term and long term effects in a closed economy, on an open economy under alternative exchange rates, and the assumptions concerning capital flow. Bibliography pp. 186 to 193, graphs, references and statistical tables.

Download or read book Essays in Monetary Economics Collected Works of Harry Johnson written by Harry Johnson and published by Routledge. This book was released on 2013-07-18 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reprinting the second edition (which included a new introduction explaining developments which had emerged since first publication) this book discusses explorations in the fundamental theory of a monetary economy, a theoretical critique of the ‘Phillips Curve’ approach to the theory of inflation and the theory of the term structure of interest rates in terms of the theory of forward markets pioneered by David Meiselman.

Download or read book Essays in Macroeconomic Policy written by Miranda S. Goeltom and published by Gramedia Pustaka Utama. This book was released on 2007 with total page 624 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Fiscal and Monetary Policy written by Jonathan A. Rawls and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Further Essays in Monetary Economics Collected Works of Harry Johnson written by Harry G. Johnson and published by Routledge. This book was released on 2013-07-18 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: A sequel to Essays in Monetary Economics, this book develops the ideas on domestic and international monetary issues, with reference to specific events and crises of the 1960s and 70s. These essays are distinguished by the author’s expert grasp of the analytical techniques and contemporaneous policy problems of both domestic and international monetary economics.

Download or read book The Preparation of Monetary Policy written by J.M. Berk and published by Springer Science & Business Media. This book was released on 2013-03-14 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: Standard macroeconomic monographs often discuss the mechanism of monetary transmission, usually ending by highlighting the complexities and uncertainties involved in this mechanism. Conversely, The Preparation of Monetary Policy takes these uncertainties as a starting point, analytically investigating their nature and spelling out their consequences for the monetary policy maker. The second innovative aspect of this book is its focus on policy preparation instead of well-covered topics such as monetary policy strategy, tactics, and implementation. Thirdly, a general, multi-model framework for preparing monetary policy is proposed, which is illustrated by case studies stressing the role of international economic linkages and of expectations. Written in a self-contained fashion, these case studies are of interest by themselves. The book is written for an audience that is interested in the art and science of monetary policy making, which includes central bankers, academics, and (graduate) students in the field of monetary economics, macroeconomics, international economics and finance.

Download or read book Essays on Fiscal and Monetary Policy written by Alfredo Mier y Teran and published by . This book was released on 2014 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: The three chapters of this dissertation investigate how micro level phenomena affect aggregate outcomes and challenge basic fiscal and monetary principles. In particular, I analyze how these phenomena affect the transmission mechanisms and outcomes of specific fiscal and monetary policies in emerging markets. In Chapter 1, I investigate the transmission of monetary policy to retail interest rates using a novel transaction-level data set that includes all corporate loans of every commercial bank in Mexico from 2005 to 2010. In particular, I analyze the speed and completeness of the pass-through of the monetary policy rate to bank lending rates, and provide evidence on the importance of bank competition to explain heterogeneity in the way banks react to monetary policy impulses along the business cycle. For this purpose, I develop a simple model of the banking firm and test its implications using dynamic panel data methods. I find that: (1) interest rate pass-through is sluggish and incomplete; (2) the degree of bank competition is positively correlated with the completeness of the interest rate pass-through; and (3) interest rate pass-through is asymmetric: lending rates adjust less in the case of monetary policy easing than in the case of tightening. Chapter 2 draws from a district-level database to investigate the local impact on socioeconomic outcomes of mining-related revenue windfalls in Peru, which have grown almost twentyfold in the last two decades. I find evidence that improvements in average living standards are related to the mining activity but independent from fiscal revenue windfalls at the district level, where inefficiencies in the use of public funds may be accounting for the disconnect between fiscal revenues and socioeconomic outcomes. In Chapter 3, I investigate how the fiscal institutional framework has given rise to deficit and procyclical biases in the case of Mexico, and evaluate how the use of alternative fiscal rules may affect these biases. For the latter, I conduct a series of simulations using an unrestricted VAR model that allows me to evaluate the effect on fiscal outcomes of a constellation of shocks calibrated to match Mexican historical macro-data. I find that Mexico's fiscal framework allows the conduct of a countercyclical fiscal policy during economic recessions; however, it does not contemplate a mechanism to generate buffers during economic expansions. Thus, fiscal policy is oftentimes procyclical and has a built-in deficit bias. Moreover, I find that a budget balance rule with an expenditure cap is able to mimic the results of a rule based on a cyclically adjusted balance in terms of reducing the procyclical and deficit biases, with the advantage of not having to rely on an autonomous fiscal agency, which is usually absent under weak institutional frameworks.

Download or read book Essays in Monetary Economics written by Harry Gordon Johnson and published by . This book was released on 1969 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Public Finance and Stabilization Policy written by Richard Abel Musgrave and published by . This book was released on 1974 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on India s Monetary and Fiscal Policies and Their Interrelation written by Duc Truong Nguyen and published by . This book was released on 2014 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of four essays on India's monetary and fiscal policies and their interrelation. The Introduction reviews the existence of the relationship between these two policies. This chapter employs a simple panel data model to analyse the relationship between fiscal deficit and central bank independence (CBI). The intuition behind this model is that if there is a connection between fiscal deficit and CBI, monetary and fiscal policies must be correlated, whence the subsequent analysis of the interrelation between these policies is feasible. This connection was confirmed by statistically significant coefficients of the estimated model. With the result from the first essay, I examine monetary reaction function (MRF) for India in the second essay. I construct MRFs using different versions of Phillips and IS Curves. I derive two IS Curves from a basic neoclassical model and a model by Davig and Leeper (2011), combine these two IS Curves with three available types of Phillips Curves to make six MRFs. I then estimate these MRFs using the Markov switching method with the purpose of finding out what the Indian MRFs look like and whether it switches between active and passive states. If India's MRFs switches between these states, India's fiscal reaction function must be estimated using the same Markov switching method accordingly. It turned out that India's monetary policy is always in active state. OLS estimations are carried out to confirm the results from Markov switching method. The estimated MRFs track the actual data very well. The third essay estimates India's fiscal reaction function (FRF). With the result from the second essay that India's monetary is always in active state, it can be inferred that India's fiscal policy should be passive because this makes the economy more stable. Therefore, I proceed with estimating India's FRF based on the government intertemporal budget constraint, which is always balance and passive in its nature. To study India FRF, this essay first establishes the theoretical foundations for the empirical estimation. In estimating India's FRF, data stationary problems are found and unbalanced regressions are employed. This essay finds that India's fiscal policy depends on debt, output gap, and interest rate levels. The estimated FRF tracks the actual reaction function very closely. The fourth essay uses a VAR model to analyze the interrelation between India's monetary and fiscal policies. This essay modifies a financial model by Sharma and Jha (2012) then applies VAR to study the interrelation between fiscal and monetary policies and how these policies affect economic growth in the context of India. It is found that the Indian economy is resilient to exogenous shock. Besides two reasons suggested in Sharma and Jha (2012) including the low integration level of the Indian banking system to the world financial market and the domination of domestic consumption and investment, this essay adds that right policies have been carried out in the face of the global financial crisis and monetary policy is always effective in dealing with exogenous shock. The dissertation concludes with a short chapter on conclusions.

Download or read book Essays on Fiscal and Monetary Policy in Open Economies written by Ayse Zeyneti Kabukcuoglu and published by . This book was released on 2013 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first chapter, I quantify the welfare effect of eliminating the U.S. capital income tax under international financial integration. I employ a two-country, heterogeneous-agent incomplete markets model calibrated to represent the U.S. and the rest of the world. Short-run and long-run factor price dynamics are key: after the tax reform, post-tax interest rate increases less under financial openness relative to autarky. Therefore the wealth-rich households gain less. Post-tax wages also fall less, so the wealth-poor are hurt less. Hence, the fraction in favor of the reform increases, although the majority still prefers the status quo. Aggregate welfare effect to the U.S. is a permanent 0.2 % consumption equivalent loss under financial openness which is 85.5 % smaller than the welfare loss under autarky. The second chapter aims to answer two questions: What helps forecast U.S. inflation? What causes the observed changes in the predictive ability of variables commonly used in forecasting US inflation? In macroeconomic analysis and inflation forecasting, the traditional Phillips curve has been widely used to exploit the empirical relationship between inflation and domestic economic activity. Atkeson and Ohanian (2001), among others, cast doubt on the performance of Phillips curve-based forecasts of U.S. inflation relative to naive forecasts. This indicates a difficulty for policy-making and private sectorâs long term nominal commitments which depend on inflation expectations. The literature suggests globalization may be one reason for this phenomenon. To test this, we evaluate the forecasting ability of global slack measures under an open economy Phillips curve. The results are very sensitive to measures of inflation, forecast horizons and estimation samples. We find however, terms of trade gap, measured as HP-filtered terms of trade, is a good and robust variable to forecast U.S. inflation. Moreover, our forecasts based on the simulated data from a workhorse new open economy macro (NOEM) model indicate that better monetary policy and good luck (i.e. a remarkably benign sample of economic shocks) can account for the empirical observations on forecasting accuracy, while globalization plays a secondary role.

Download or read book Essays on Money Banking and Regulation written by C.J.M Kool and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essays on Money, Banking and Regulation honors the interests and achievements of the Dutch economist Conrad Oort. The book is divided into four parts. Part 1 - Fiscal and monetary policy - reviews a variety of topics ranging from the measurement of money to the control and management of government expenditures. Part 2 - International institutions and international economic policy - looks at the international dimension of monetary and fiscal policy, with extensive discussion of the International Monetary Fund and the European Monetary Union. Part 3 - The future of international banking and the financial sector in the Netherlands - is an insider's view of the strategic choices facing financial institutions in the near future. Finally, Part 4 - Taxation and reforms in the Dutch tax system - is closest to Oort's research and practice since he has become known as an architect of the 1990 Dutch tax reform; this part is dedicated in particular to the tax reforms suggested by Oort.

Download or read book Essays In The Fundamental Theory Of Monetary Economics And Macroeconomics written by John Smithin and published by World Scientific Publishing Company. This book was released on 2013-06-27 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive overview, in the form of eight long essays, of the evolution of monetary theory over the three-quarters of century, from the time of Keynes to the present day. The essays are originally based on lecture notes from a graduate course on Advanced Monetary Economics offered at York University, Toronto, written in the style of academic papers. The essays are mathematical in method — but also take a historical perspective, tracing the evolution of monetary thought through the Keynesian model, the monetarist model, new classical model, etc, up to and including the neo-Wickesellian models of the early 21st century. The book will be an essential resource for both graduate and advanced undergraduate students in economics, as well as for individual researchers seeking basic information on the theoretical background of contemporary debates.

Download or read book Essays on Fiscal and Monetary Policy written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Eclectic Essays in Fiscal and Monetary Policy written by Florin Ovidiu Bilbiie and published by . This book was released on 2004 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: