Interaction between fiscal and monetary policy in a dynamic nonlinear model.
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ABSTRACT:
SUBMITTER: Bertella MA
PROVIDER: S-EPMC4371610 | biostudies-literature | 2015
REPOSITORIES: biostudies-literature
Publications
Interaction between fiscal and monetary policy in a dynamic nonlinear model.
Bertella Mario A MA Rego Henio A HA Neris Celso C Silva Jonathas N JN Podobnik Boris B Stanley H Eugene HE
PloS one 20150323 3
The objective of this study is to verify the dynamics between fiscal policy, measured by public debt, and monetary policy, measured by a reaction function of a central bank. Changes in monetary policies due to deviations from their targets always generate fiscal impacts. We examine two policy reaction functions: the first related to inflation targets and the second related to economic growth targets. We find that the condition for stable equilibrium is more restrictive in the first case than in ...[more]
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