Deficit, monetization, and economic growth: a case for multiplicity and indeterminacy

Abstract

International audienc

Inflation Targeting, Fiscal Rules and the Policy Mix: Cross‐effects and Interactions

“…Although our results reflect pre-GFC reforms that were mainly aimed at achieving greater monetary and fiscal discipline, the evidence that partial reforms seem less likely to be effective than comprehensive ones should be kept in mind in the ongoing debate on adapting monetary and fiscal frameworks to post-GFC conditions (Krugman, 2014;Ingves, 2016;Menuet et al, 2018) -and in particular to the perceived need to better coordinate both macroeconomic policy tools. Although our results reflect pre-GFC reforms that were mainly aimed at achieving greater monetary and fiscal discipline, the evidence that partial reforms seem less likely to be effective than comprehensive ones should be kept in mind in the ongoing debate on adapting monetary and fiscal frameworks to post-GFC conditions (Krugman, 2014;Ingves, 2016;Menuet et al, 2018) -and in particular to the perceived need to better coordinate both macroeconomic policy tools.…”

“…The main policy implication is that there may be value in a holistic approach to reforms of the institutions guiding monetary and fiscal policies. Although our results reflect pre-GFC reforms that were mainly aimed at achieving greater monetary and fiscal discipline, the evidence that partial reforms seem less likely to be effective than comprehensive ones should be kept in mind in the ongoing debate on adapting monetary and fiscal frameworks to post-GFC conditions (Krugman, 2014;Ingves, 2016;Menuet et al, 2018) -and in particular to the perceived need to better coordinate both macroeconomic policy tools.…”

“…Recent proposals to rethink central bank independence and fiscal policy rules in the light of post-GFC conditions (Krugman, 2014;Ingves, 2016;Menuet et al, 2018) could, in our view, benefit from internalising the likely interdependence between these institutional arrangements. This policy lesson arguably extends beyond the conditions prevailing during our sample period, when institutional reforms were specifically aimed at strengthening budget positions and taming inflationary pressures.…”

“…This policy lesson arguably extends beyond the conditions prevailing during our sample period, when institutional reforms were specifically aimed at strengthening budget positions and taming inflationary pressures. Recent proposals to rethink central bank independence and fiscal policy rules in the light of post-GFC conditions (Krugman, 2014;Ingves, 2016;Menuet et al, 2018) could, in our view, benefit from internalising the likely interdependence between these institutional arrangements.…”

Approaches on the Vulnerability of Romania's Economy in Terms of Budget Deficit and Inflation in a Continuous Form

“…Other authors address the problem of budget deficit in terms of getting closer to the poverty line and the trap of the dependence of national economies on transactions with neighbouring countries, quantifying disadvantaged economic flows through the waste of public reserves on imports of high added value goods and services that weaken national economies and grow the degree of poverty (Menuet, Minea and Villieu, 2018).…”