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Peculiarities of Interaction of Monetary and Fiscal Policy Under the Inflation Targeting Regime
[Особенности Взаимодействия Денежно-Кредитной И Фискальной Политики При Режиме Инфляционного Таргетирования]

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  • Perevyshin, Yuri (Перевышин, Юрий)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

The paper deals with the basic aspects of the interaction of fiscal and monetary policy. Analysis of theoretical studies allows to distinguish two main aspects of interaction: the choice between output and inflation, and the problem of sustainability of public debt and inflation. Using a model with Markov regime-switching, we assessed interaction of fiscal and monetary policy in the Russian economy in the period from 2006 to 2015. The analysis showed that the ongoing uncoordinated monetary and fiscal policy can lead to inflation acceleration.

Suggested Citation

  • Perevyshin, Yuri (Перевышин, Юрий), 2017. "Peculiarities of Interaction of Monetary and Fiscal Policy Under the Inflation Targeting Regime [Особенности Взаимодействия Денежно-Кредитной И Фискальной Политики При Режиме Инфляционного Таргетир," Working Papers 031711, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:wpaper:031711
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