Monetary and Fiscal Policies Interaction in Monetary Unions

23 Pages Posted: 16 Jan 2018

See all articles by Pasquale Foresti

Pasquale Foresti

London School of Economics & Political Science (LSE)

Date Written: February 2018

Abstract

In this paper, the literature on the interaction between monetary and fiscal policies in a monetary union is surveyed. By adopting the concept of symbiosis as a starting point, the paper highlights the importance of uncertainty, policy makers' preferences and targets. Then, the role of commitment to policy rules and coordination is addressed. The analysis also focuses on the importance of the data considered for the generation of the policy mix. As a final step, the paper discusses the main results in the literature on public debt management in a monetary union. All the reported theoretical results are then adopted to retrieve policy and institutional implications for the European Monetary Union.

Keywords: Economic shocks, EMU, Monetary and fiscal policies interaction, Monetary union, Policy mix

Suggested Citation

Foresti, Pasquale, Monetary and Fiscal Policies Interaction in Monetary Unions (February 2018). Journal of Economic Surveys, Vol. 32, Issue 1, pp. 226-248, 2018, Available at SSRN: https://ssrn.com/abstract=3102641 or http://dx.doi.org/10.1111/joes.12194

Pasquale Foresti (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
184
PlumX Metrics