IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Interaction between Monetary and Fiscal Policy in a Small Open Economy with Autonomous Monetary Policy and Fiscal Policy Rule

  • David Prusvic

    ()

    (University of Economics, Prague)

Registered author(s):

    The study discusses central bank’s and government’s behaviour in a small open economy with a strong autonomous monetary policy and fiscal policy restricted by fiscal policy rule. Composed model thus fully corresponds to the Czech reality, where the Czech National Bank’s independency is evaluated as a very strong one, its monetary-policy regime is inflation targeting and Czech public finance, or the General Government Sector’s finance (according to the system of national accounts ESA 95), must follow fiscal policy rules of the Stability and Growth Pact. It simply claims deficits not to exceed the 3% level of GDP and public debt should remain below the 60% of GDP limit. Because the Czech economy is not confronted with the “excessive debt” problem and it seems it won’t be for a few years, the analysis focuses an attention especially on deficit limit criteria. The last part of the study is denoted to the common monetary policy and individual fiscal policy problematic, again from the small open economy point of view. The study could contribute to solution of the question, what fiscal policy should be practiced before and after the Economic and Monetary Union entrance.

    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://www.vsfs.cz/periodika/acta-2008-03.pdf
    Download Restriction: no

    Article provided by University of Finance and Administration in its journal ACTA VSFS.

    Volume (Year): 2 (2008)
    Issue (Month): 1 ()
    Pages: 56-79

    as
    in new window

    Handle: RePEc:prf:journl:v:2:y:2008:i:1:p:56-79
    Contact details of provider: Postal: Estonská 500/3, 101 00 Praha 10
    Phone: (+420) 210 088 800
    Fax: (+420) 271 741 597
    Web page: http://www.vsfs.cz/
    Email:


    More information through EDIRC

    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. Gordy, Michael B., 2003. "A risk-factor model foundation for ratings-based bank capital rules," Journal of Financial Intermediation, Elsevier, vol. 12(3), pages 199-232, July.
    2. Wagner, Wolf & Marsh, Ian W., 2006. "Credit risk transfer and financial sector stability," Journal of Financial Stability, Elsevier, vol. 2(2), pages 173-193, June.
    3. Boris Hofmann, 2001. "The determinants of private sector credit in industrialised countries: do property prices matter?," BIS Working Papers 108, Bank for International Settlements.
    4. John G. Cragg & Russell S. Uhler, 1970. "The Demand for Automobiles," Canadian Journal of Economics, Canadian Economics Association, vol. 3(3), pages 386-406, August.
    Full references (including those not matched with items on IDEAS)

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

    When requesting a correction, please mention this item's handle: RePEc:prf:journl:v:2:y:2008:i:1:p:56-79. 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: (Helena Hakenova)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.