Does monetary cooperation or confrontation lead to successful fiscal consolidation?
AbstractAccommodation of fiscal authorities by monetary policy is controversial, as can be seen in current euro area discussions. Some go further and suggest that confrontational enforcement by central banks taking a hard line on adjustment is critical to inducing longer-term fiscal stabilisation. Others suggest that fiscal commitment must come first. This article steps back to look at the historical record of central bank behaviour vis-à-vis fiscal authorities, at least until the current crisis period, and whether cooperative approaches ahead of consolidations have proven as dangerous as some would suggest.
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Bibliographic InfoArticle provided by Banque de France in its journal Financial Stability Review.
Volume (Year): (2012)
Issue (Month): 16 (April)
Other versions of this item:
- Tomas Hellebrandt & Adam S. Posen & Marilyne Tolle, 2012. "Does Monetary Cooperation or Confrontation Lead to Successful Fiscal Consolidation?," Policy Briefs PB12-8, Peterson Institute for International Economics.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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