2004, 2003-2004, English, Article, Working paper edition: On the Interaction of Monetary and Fiscal Policy Chadha, Jagjit S.; Nolan, Charles

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Bookmark: http://trove.nla.gov.au/version/725
Physical Description
  • 460404 bytes, application/​pdf
  • Working Paper
Published
  • 2004-06-16T16:05:20Z
  • 2003-01
Language
  • English

Edition details

Title
  • On the Interaction of Monetary and Fiscal Policy
Author
  • Chadha, Jagjit S.
  • Nolan, Charles
Published
  • 2004-06-16T16:05:20Z
  • 2003-01
Physical Description
  • 460404 bytes, application/​pdf
  • Working Paper
Subjects
Notes
  • In this paper we review some fundamental issues that have been identified by macroeconomists in discussing the co-ordination of monetary and fiscal policy. As Sargent and Wallace (1981) graphically illustrated, the consolidated public sector present-value budget constraint means that monetary and fiscal policy are ultimately joint decisions. However, as we show in a quantitative general equilibrium model, even when fiscal solvency is not an issue, monetary and fiscal policy may still need to be co-ordinated.
Language
  • English
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