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The Impact Of The Fiscal Policy Change On The Main Macroeconomic Variables

Author

Listed:
  • TRIFU, Cosmin

    (Bucharest University of Economic Studies, Doctoral School of Finance, Romania)

  • BLAGA, Florin

    (Bucharest University of Economic Studies, Doctoral School of Finance, Romania)

  • MIHAI, Georgian Danut

    (Bucharest University of Economic Studies, Doctoral School of Finance, Romania)

  • NEACSU, George Alexandru

    (Bucharest University of Economic Studies, Doctoral School of Finance, Romania)

  • BICHIR-GHELASE, Antonela

    (Bucharest University of Economic Studies, Doctoral School of Finance, Romania)

Abstract

In this article we propose an empirical study using a Bayesian VAR type model with which we quantify the impact of fiscal policy changes on the main macroeconomic variables, namely the exchange rate, market interest rates, inflation, unemployment, etc. The results show us that most shocks extinguish at the time of monetary policy interventions of the opposite direction to the type of fiscal policy.

Suggested Citation

  • TRIFU, Cosmin & BLAGA, Florin & MIHAI, Georgian Danut & NEACSU, George Alexandru & BICHIR-GHELASE, Antonela, 2022. "The Impact Of The Fiscal Policy Change On The Main Macroeconomic Variables," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 10(1), pages 93-97, October.
    • Handle: RePEc:vls:rojfme:v:10:y:2022:i:1:p:93-97
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    References listed on IDEAS

    as
    1. Akanbi, Olusegun Ayodele, 2013. "Macroeconomic effects of fiscal policy changes: A case of South Africa," Economic Modelling, Elsevier, vol. 35(C), pages 771-785.
    2. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1329-1368.
    3. Oscar Parkyn & Tugrul Vehbi, 2014. "The Effects of Fiscal Policy in New Zealand: Evidence from a VAR Model with Debt Constraints," The Economic Record, The Economic Society of Australia, vol. 90(290), pages 345-364, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bayesian VAR; Fiscal Policy; Monetary Policy;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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