Effective Fiscal-Monetary Interactions in Severe Recessions

Effective Fiscal-Monetary Interactions in Severe Recessions
Author :
Publisher : International Monetary Fund
Total Pages : 47
Release :
ISBN-10 : 9798400218880
ISBN-13 :
Rating : 4/5 (80 Downloads)

Book Synopsis Effective Fiscal-Monetary Interactions in Severe Recessions by : Mr. Jiaqian Chen

Download or read book Effective Fiscal-Monetary Interactions in Severe Recessions written by Mr. Jiaqian Chen and published by International Monetary Fund. This book was released on 2022-09-02 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: The COVID-19 pandemic and the subsequent need for policy support have called the traditional separation between fiscal and monetary policies into question. Based on simulations of an open economy DSGE model calibrated to emerging and advance economies and case study evidence, the analysis shows when constraints are binding a more integrated approach of looking at policies can lead to a better policy mix and ultimately better macroeconomic outcomes under certain circumstances. Nonetheless, such an approach entails risks, necessitating a clear assessment of each country’s circumstances as well as safeguards to protect the credibility of the existing institutional framework.


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