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Monetary and Fiscal Policy Coordination

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Author Info
Hanif , Muhammad N.
Arby, M. Farooq

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Abstract

Macroeconomic policies are meant to achieve non-inflationary, stable growth. There are two major groups of policy instruments to achieve the purpose; one is related to monetary conditions and the other to fiscal conditions. Monetary instruments are employed by the central bank and fiscal instruments are employed by ministry of finance. The objectives and implications of policy measures taken by the two institutions often conflict with each other and thus call for policy coordination for effective implementation of policy decisions to achieve the set targets. The policy coordination has to be supported by concrete institutional and operating arrangements like monetary and fiscal coordination board. In Pakistan there was no concept of such policy coordination before financial sector reforms which were initiated in 1989-90. This financial reforms and restructuring process necessitated the monetary and financial policy coordination and a monetary and fiscal policy coordination board has been established in Pakistan

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10307.

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Date of creation: 2003
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Handle: RePEc:pra:mprapa:10307

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Find related papers by JEL classification:
E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization

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  1. Tabellini, Guido, 1986. "Money, debt and deficits in a dynamic game," Journal of Economic Dynamics and Control, Elsevier, vol. 10(4), pages 427-442, December. [Downloadable!] (restricted)
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This page was last updated on 2009-12-8.

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