Complementaries between fiscal policy and monetary policy : literature review / by Wei Dong, Geoffrey Dunbar, Christian Friedrich, Dmitry Matveev, Romanos Priftis and Lin Shao.: FB3-6/2021-4E-PDF
"This paper reviews and summarizes the literature on the complementary relationship between fiscal policy and monetary policy. We focus on four types of fiscal policy: (1) automatic stabilizers, (2) state-contingent non-discretionary fiscal policy, (3) discretionary fiscal stimulus and (4) government credit policies. The literature shows that automatic fiscal stabilizers can play a role in stabilizing business cycle fluctuation. But because they can have multiple policy objectives, their optimal design remains an open question. An alternative policy framework features state-contingent non-discretionary fiscal expenditures with a pre-committed fiscal spending formula triggered by objective macroeconomic conditions. Such a policy offers the advantage of being timely and easy to communicate; but at the same time, it poses challenges for identifying appropriate triggers and program expenditures with high short-run multipliers"--Abstract, page ii.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.903071&sl=0
| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | Complementaries between fiscal policy and monetary policy : literature review / by Wei Dong, Geoffrey Dunbar, Christian Friedrich, Dmitry Matveev, Romanos Priftis and Lin Shao. |
| Series title | Staff discussion paper = Document d'analyse du personnel, 1914-0568 ; 2021-4 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | Cover title. "March 15, 2021." Includes bibliographical references (pages 22-29). Includes abstracts in English and French. |
| Publishing information | Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2021. ©2021 |
| Author / Contributor | Dong, Wei, author. |
| Description | 1 online resource (iii, 29 pages) : graphs. |
| Catalogue number |
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| Subject terms | Fiscal policy. Monetary policy. Politique fiscale. Politique monétaire. |
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