This paper attempts to study the importance of both Monetary Policy and Fiscal Policy in the international context. And also to understand the chemistry between Monetary and Fiscal policy and extent to which the coordination can be achieved. In any open economy, Monetary policy is designed, formulated and being conducted by the central Bank, wherein the National Planning or Ministry of Finance of the respective country is responsible for designing, formulating and conducting the Fiscal policy for the nation. This research paper finds that there is a close linkage between Monetary and Fiscal policy and hence the proper coordination leads to addressing today's biggest talk of nation‟s deficit.
Currently there is an abundance of literature available on both Monetary and Fiscal policy. There is also good number of books available containing plethora of information on the subject. This research paper addresses the importance, impact, and issues of Monetary and Fiscal policy in open economy.
Inhaltsverzeichnis (Table of Contents)
- ABSTRACT
- INTRODUCTION
- MONETARY AND FISCAL POLICY – AN OVERVIEW
- FUNDAMENTALS OF MONETARY AND FISCAL POLICY COORDINATION:
- LITERATURE REVIEW
- THEORETICAL FRAMEWORK AND THE METHODOLOGY
- MONETARY AND FISCAL POLICY GAME DIAGRAM (Nordhaus)
- HYPOTHESIS BASED ON THE POLICY GAME
- FURTHER ANALYSIS, RESULTS AND RECOMMENDATIONS
- CONCLUSION
- REFERENCES
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper investigates the significance of monetary and fiscal policies in the international context, aiming to understand the relationship between these policies and the extent to which their coordination can be achieved. The study explores the impact of coordination on economic variables such as inflation, unemployment, interest rates, and output.
- Coordination of Monetary and Fiscal Policy in Open Economies
- Impact of Policy Coordination on Economic Variables
- Role of Central Banks and Government in Economic Crises
- Analysis of Monetary and Fiscal Policy Games
- Theoretical Framework and Methodology for Policy Coordination
Zusammenfassung der Kapitel (Chapter Summaries)
- ABSTRACT: This chapter introduces the paper's focus on studying the importance of monetary and fiscal policies in the international context, highlighting the need for coordination to address economic challenges.
- INTRODUCTION: This chapter discusses the debate surrounding the role of central banks and governments in economic crises, emphasizing the importance of coordination between monetary and fiscal policies to address future financial instability.
- MONETARY AND FISCAL POLICY – AN OVERVIEW: This chapter provides a comprehensive overview of monetary and fiscal policies, outlining their key objectives and mechanisms in open economies.
- FUNDAMENTALS OF MONETARY AND FISCAL POLICY COORDINATION: This chapter explores the fundamental principles and strategies involved in coordinating monetary and fiscal policies to achieve desired economic outcomes.
- LITERATURE REVIEW: This chapter reviews existing literature on monetary and fiscal policy coordination, examining different perspectives and research findings on the subject.
- THEORETICAL FRAMEWORK AND THE METHODOLOGY: This chapter presents the theoretical framework and methodology used in the study, including a discussion of the monetary and fiscal policy game diagram and hypothesis testing.
Schlüsselwörter (Keywords)
This paper focuses on the key concepts of monetary policy, fiscal policy, coordination, monetary bliss, fiscal bliss, and their implications for economic stability and performance. It also explores the theoretical and practical aspects of policy games and their application in analyzing policy interactions.
- Quote paper
- Vijayakumar Honnungar (Author), 2010, Generic study on Monetary and Fiscal policy co-ordination, Munich, GRIN Verlag, https://www.grin.com/document/173969
