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Interakce monetární a fiskální politiky zemí visegradské skupiny
[The Interaction of Monetary and Fiscal Policy in the Visegrad Group Countries]

Author

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  • Jan Janků
  • Stanislav Kappel
  • Zuzana Kučerová

Abstract

The aim of this article is to estimate the mutual interaction of monetary and fiscal policy in the Visegrad Group countries, i.e. in the Czech Republic, Slovakia, Poland, and Hungary. The relations between monetary and fiscal policy - its coordination, cooperation or mutual antagonism - are basic determinants of successful economic policy implementation of each country. Fiscal and monetary policies usually have different aims. Therefore, some conflict situations may arise in practical economic and political decision-making process. Methodical approaches of this article are based on the game theory, which deals with the analysis of a wide range of decision-making situations with more participants (players); it is primarily focused on the conflict situations. Our results confirm the stabilizing role of monetary policy in the Czech Republic, Poland, and Hungary, also the dominant role of monetary policy in the Czech Republic and the dominant role of fiscal policy in Hungary. In the case of Slovakia, inconsistent results concerning the monetary policy role are probably caused by its EMR II membership and Eurozone entry in 2009.

Suggested Citation

  • Jan Janků & Stanislav Kappel & Zuzana Kučerová, 2014. "Interakce monetární a fiskální politiky zemí visegradské skupiny [The Interaction of Monetary and Fiscal Policy in the Visegrad Group Countries]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(4), pages 459-479.
    • Handle: RePEc:prg:jnlpol:v:2014:y:2014:i:4:id:964:p:459-479
    DOI: 10.18267/j.polek.964
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    More about this item

    Keywords

    policy objectives; policy interactions; policy coordination; non-cooperative games; monetary policy; game theory; fiscal policy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • 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; Treasury Policy

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