Fiscal policymaking and the central bank institutional constraint
AbstractIn recent years, a developing literature has concentrated on issues such as the influence of central bank independence on the conduct of monetary policy, and the connected issue as to whether the central bank accommodates government fiscal policy. Much less has been done, however, to investigate the reverse interaction: the extent to which central bank independence influences the formation of fiscal policy. Using pooled cross-section data for twelve industrialized countries over the 1961-83 period, this paper finds some support for the hypothesis that the government budget deficits and inflation performance are indeed both affected by the independence of the centr al bank. Copyright 1988 by WWZ and Helbing & Lichtenhahn Verlag AG
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Dallas in its series Research Paper with number 8606.
Date of creation: 1986
Date of revision:
Other versions of this item:
- Burdekin, Richard C K & Laney, Leroy O, 1988. "Fiscal Policymaking and the Central Bank Institutional Constraint," Kyklos, Wiley Blackwell, vol. 41(4), pages 647-62.
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.:
- Richard C.K. Burdekin, 1986. "Fiscal pressure and central bank policy objectives," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue May, pages 1-9.
- Preston J. Miller, 1983. "Higher deficit policies lead to higher inflation," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win.
- Thomas J. Sargent, 1981.
"The ends of four big inflations,"
158, Federal Reserve Bank of Minneapolis.
- Barro, Robert J, 1979.
"On the Determination of the Public Debt,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 940-71, October.
- McMillin, W Douglas, 1986. "Federal Deficits, Macrostabilization Goals, and Federal Reserve Behavior," Economic Inquiry, Western Economic Association International, vol. 24(2), pages 257-69, April.
- Barth, James & Sickles, Robin & Wiest, Philip, 1982. "Assessing the impact of varying economic conditions on federal reserve behavior," Journal of Macroeconomics, Elsevier, vol. 4(1), pages 47-70.
- Bradley, Michael D & Potter, Susan M, 1986. "The State of the Federal Budget and the State of the Economy: Further Evidence," Economic Inquiry, Western Economic Association International, vol. 24(1), pages 143-53, January.
- Thomas J. Sargent & Neil Wallace, 1981. "Some unpleasant monetarist arithmetic," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall.
- Evans, Paul, 1985. "Do Large Deficits Produce High Interest Rates?," American Economic Review, American Economic Association, vol. 75(1), pages 68-87, March.
- Robert J. Gordon, 1977. "World Inflation and Monetary Accommodation in Eight Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(2), pages 409-478.
- Alan S. Blinder, 1982. "Issues in the coordination of monetary and fiscal policies," Proceedings, Federal Reserve Bank of Kansas City, pages 3-46.
- Ahking, Francis W. & Miller, Stephen M., 1985. "The relationship between government deficits, money growthm and inflation," Journal of Macroeconomics, Elsevier, vol. 7(4), pages 447-467.
- Thomas D. Willett, . "A Political Economy Analysis of the Maastricht and Stability Pact Fiscal Criteria," Claremont Colleges Working Papers 1999-33, Claremont Colleges.
- Mas, Ignacio, 1994. "Central bank independence : a critical view," Policy Research Working Paper Series 1356, The World Bank.
- Mas, Ignacio, 1995. "Central bank independence: A critical view from a developing country perspective," World Development, Elsevier, vol. 23(10), pages 1639-1652, October.
- Aarle, B. van & Bovenberg, A.L. & Raith, M., 1995.
"Monetary and fiscal policy interaction and government debt stabilization,"
1995-1, Tilburg University, Center for Economic Research.
- Bas Aarle & Lans Bovenberg & Matthias Raith, 1995. "Monetary and fiscal policy interaction and government debt stabilization," Journal of Economics, Springer, vol. 62(2), pages 111-140, June.
- Bovenberg, A.L. & Aarle , B. van & Raith, M., 1995. "Monetary and fiscal policy interaction and government debt stabilization," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153069, Tilburg University.
- Richard C.K. Burdekin & King Banaian & Mark Hallerberg & Pierre L. Siklos, 2011. "Fiscal and monetary institutions and policies: onward and upward?," Journal of Financial Economic Policy, Emerald Group Publishing, vol. 3(4), pages 340-354, November.
- Blanca Bustamante & Valentín Carril, 1989. "Análisis Teórico y Empírico de la Autonomía del Banco Central," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 26(77), pages 145-159.
- Giuseppe Tullio & Marcio Ronci, 1997. "Central Bank Autonomy, the Exchange Rate Constraint and Inflation: The Case of Italy, 1970â€“1992," Open Economies Review, Springer, vol. 8(1), pages 31-49, January.
- Donato Masciandaro, 1995. "Designing a central bank: Social player, monetary agent, or banking agent?," Open Economies Review, Springer, vol. 6(4), pages 399-410, October.
- Lucotte, Yannick, 2012. "Adoption of inflation targeting and tax revenue performance in emerging market economies: An empirical investigation," Economic Systems, Elsevier, vol. 36(4), pages 609-628.
- Francesco Papadia & Gian Ruggiero, 1999. "Central Bank Independence and Budget Constraints for a Stable Euro," Open Economies Review, Springer, vol. 10(1), pages 63-90, February.
- Bernard Eschweiler & Michael D. Bordo, 1996.
"Rules, Discretion, and Central Bank Independence: The German Experience 1880 - 1989,"
Departmental Working Papers
199402, Rutgers University, Department of Economics.
- Bernhard Eschweiler & Michael D. Bordo, 1995. "Rules, Discretion, and Central Bank Independence: The German Experience 1880-1989," NBER Working Papers 4547, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Delia Rodriguez).
If references are entirely missing, you can add them using this form.