Advanced Search
MyIDEAS: Login to save this paper or follow this series

Interaction entre politique monétaire et politique budgétaire:Cas de la Grèce
[Fiscal and Monetary Policy Interactions : The Greece Case]

Contents:

Author Info

  • Daly, Hounaida
  • Smida, Mounir

Abstract

We attempt to draw together monetary and fiscal policy making theory and the cointegrated VAR econometric methodology. Kirsanova at al(2005) have provided theory on the design of optimal monetary and fiscal policies, but estimation of monetary policy arrangements has suffered from many salient criticisms, not least non-stationarity. A cointegrated vector-autoregressive model is used in this paper to estimate monetary and _fiscal policy rules and gain insight on policy interactions in Greece. Predictions found in the literature find partial support, and survey data is also used to help shed light on possible forms of expectations formation. The evidence does not suggest strong policy interactions, and supports the idea that monetary policy is more stabilising in its inuence on economic activity than is fiscal policy.

Download Info

If 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.
File URL: http://mpra.ub.uni-muenchen.de/45931/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 45931.

as in new window
Length:
Date of creation: 03 Mar 2013
Date of revision:
Handle: RePEc:pra:mprapa:45931

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Politique monétaire; Politique budgétaire; Grèce; Interaction entre politique monétaire et budgétaire; Dettes publiques; Déficits Budgétaires.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Troy Davig & Eric M. Leeper & Hess Chung, 2005. "Monetary and fiscal policy switching," Research Working Paper, Federal Reserve Bank of Kansas City RWP 05-12, Federal Reserve Bank of Kansas City.
  2. Arby, Muhammad Farooq & Hanif, Muhammad Nadeem, 2010. "Monetary and fiscal policies coordination - Pakistan's experience," MPRA Paper 24160, University Library of Munich, Germany.
  3. Vito Tanzi, 2008. "The role of the state and public finance in the next generation," OECD Journal on Budgeting, OECD Publishing, OECD Publishing, vol. 8(2), pages 1-27.
  4. Eduardo Levy Yeyati & Federico Sturzenegger, 2009. "(The Effect of) Monetary and Exchange Rate Policies (on Development)," Business School Working Papers 2009-03, Universidad Torcuato Di Tella.
  5. J. James Reade, 2011. "Modelling Monetary and Fiscal Policy in the US: A Cointegration Approach," Discussion Papers, Department of Economics, University of Birmingham 11-02, Department of Economics, University of Birmingham.
  6. Marvin Goodfriend & Robert G. King, 1998. "The new neoclassical synthesis and the role of monetary policy," Working Paper, Federal Reserve Bank of Richmond 98-05, Federal Reserve Bank of Richmond.
  7. Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(5), pages 1123-1175, 09.
  8. International Monetary Fund, 1994. "The Coordination of Domestic Public Debt and Monetary Management in Economies in Transition," IMF Working Papers 94/148, International Monetary Fund.
  9. Sims, Christopher A, 1994. "A Simple Model for Study of the Determination of the Price Level and the Interaction of Monetary and Fiscal Policy," Economic Theory, Springer, vol. 4(3), pages 381-99.
  10. Christopher Sims, 2005. "Improving monetary policy models," Proceedings, Board of Governors of the Federal Reserve System (U.S.).
  11. Eric M. Leeper & Christopher A. Sims, 1994. "Toward a Modern Macroeconomic Model Usable for Policy Analysis," NBER Working Papers 4761, National Bureau of Economic Research, Inc.
  12. Athanasios Orphanides & Simon Van_Norden, 2000. "The Reliability of Output Gap Estimates in Real Time," Econometric Society World Congress 2000 Contributed Papers 0768, Econometric Society.
  13. Aarle, B. van & Bovenberg, A.L. & Raith, M., 1996. "Money, Fiscal Defecits and Government Debt in a Monetary Union," Discussion Paper, Tilburg University, Center for Economic Research 1996-34, Tilburg University, Center for Economic Research.
  14. Matteo Fragetta & Tatiana Kirsanova, 2007. "Strategic Monetary and Fiscal Policy Interactions: An Empirical Investigation," Discussion Papers 0706, Exeter University, Department of Economics.
  15. Nicos Christodoulakis, 2010. "Crisis, Threats and Ways Out for the Greek Economy," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 4(1), pages 89-96, June.
  16. Fernanda Nechio, 2010. "The Greek crisis: Argentina revisited?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue nov1.
  17. Svensson, Lars E.O., 1997. "Inflation Targeting: Some Extensions," Seminar Papers 625, Stockholm University, Institute for International Economic Studies.
  18. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 85(3), pages 473-91, June.
  19. Traum, Nora & Yang, Shu-Chun S., 2011. "Monetary and fiscal policy interactions in the post-war U.S," European Economic Review, Elsevier, vol. 55(1), pages 140-164, January.
  20. Taylor, John B., 1999. "The robustness and efficiency of monetary policy rules as guidelines for interest rate setting by the European central bank," Journal of Monetary Economics, Elsevier, vol. 43(3), pages 655-679, June.
  21. Jean-Guillaume Sahuc & Frank Smets, 2007. "Differences in interest rate policy at the ECB and the Fed : an investigation with a medium-scale DSGE model," Documents de recherche, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne 07-07, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  22. Bunea-Bontas, Cristina Aurora & Petre, Mihaela Cosmina, 2009. "Fiscal Policy during the current Crisis," MPRA Paper 18676, University Library of Munich, Germany.
  23. Dixit, Avinash, 2001. "Games of monetary and fiscal interactions in the EMU," European Economic Review, Elsevier, vol. 45(4-6), pages 589-613, May.
  24. M. Woodford., 2010. "Convergence in Macroeconomics: Elements of the New Synthesis," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 10.
  25. Marvin Goodfriend, 2007. "How the World Achieved Consensus on Monetary Policy," NBER Working Papers 13580, National Bureau of Economic Research, Inc.
  26. 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.
  27. Patrizio Tirelli & V. Anton Muscatelli & Carmine Trecroci, 2004. "The interaction of fiscal and monetary policies: some evidence using structural econometric models'," Money Macro and Finance (MMF) Research Group Conference 2003 103, Money Macro and Finance Research Group.
  28. Carlos De Resende & Nooman Rebei, 2008. "The Welfare Implications of Fiscal Dominance," Working Papers 08-28, Bank of Canada.
  29. Frank Smets & Rafael Wouters, 2005. "Bayesian New Neoclassical Synthesis (NNS) Models: Modern Tools for Central Banks," Journal of the European Economic Association, MIT Press, MIT Press, vol. 3(2-3), pages 422-433, 04/05.
  30. Eric M. Leeper, 1990. "The dynamics of interest rate and tax rules in a stochastic model," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 375, Board of Governors of the Federal Reserve System (U.S.).
  31. Sims, Christopher A., 1998. "Econometric implications of the government budget constraint," Journal of Econometrics, Elsevier, vol. 83(1-2), pages 9-19.
  32. Ansgar Belke & Christian Dreger, 2011. "Ramifications of Debt Restructuring on the Euro Area: The Example of Large European Economies' Exposure to Greece," Discussion Papers of DIW Berlin 1141, DIW Berlin, German Institute for Economic Research.
  33. Vassilis Th. Rapanoss & Georgia Kaplanoglou, 2010. "Independent Fiscal Councils and Their Possible Role in Greece," Economic Bulletin, Bank of Greece, Economic Research Department, issue 33, pages 7-20, May.
  34. Pablo Burriel & Jesus Fernandez-Villaverde & Juan F. Rubio-Ramirez, 2009. "MEDEA: A DSGE Model for the Spanish Economy," PIER Working Paper Archive 09-017, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  35. Taylor, J.B., 1998. "The Robustness and Efficiency of Monetary Policy Rules as Guidelines for Interest Rate Setting by European Central Bank," Papers 649, Stockholm - International Economic Studies.
  36. Michael Woodford, 2003. "Optimal Interest-Rate Smoothing," Review of Economic Studies, Oxford University Press, vol. 70(4), pages 861-886.
  37. Thomas Moutos & Christos Tsitsikas, 2010. "Whither Public Interest: The Case of Greece's Public Finances," CESifo Working Paper Series 3098, CESifo Group Munich.
  38. Simon Wren-Lewis, 2011. "Comparing the delegation of monetary and fiscal policy," Economics Series Working Papers 540, University of Oxford, Department of Economics.
  39. Hiona Balfoussia & Heather Gibson, 2010. "Inflation and Nominal Uncertainty: the case of Greece," Economic Bulletin, Bank of Greece, Economic Research Department, issue 33, pages 63-78, May.
  40. Andrew Hughes Hallet & Jan Libich & Petr Stehlik, 2008. "Welfare Improving Coordination Of Fiscal And Monetary Policy," CAMA Working Papers 2008-04, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  41. Christopher A. Sims, 2007. "Monetary Policy Models," Working Papers 1032, Princeton University, Department of Economics, Center for Economic Policy Studies..
  42. Leeper, Eric M., 1991. "Equilibria under 'active' and 'passive' monetary and fiscal policies," Journal of Monetary Economics, Elsevier, vol. 27(1), pages 129-147, February.
  43. Woodford, Michael, 1994. "Monetary Policy and Price Level Determinacy in a Cash-in-Advance Economy," Economic Theory, Springer, vol. 4(3), pages 345-80.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:45931. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.