dc.contributor.author | Vázquez Pérez, Jesús | |
dc.date.accessioned | 2012-02-03T12:43:09Z | |
dc.date.available | 2012-02-03T12:43:09Z | |
dc.date.issued | 2008-04 | |
dc.identifier.issn | 1988-088X | |
dc.identifier.uri | http://hdl.handle.net/10810/6681 | |
dc.description.abstract | This paper empirically studies the dynamic relationship between monetary and fiscal policies by analyzing the comovements between the Fed funds rate and the primary deficit/output ratio. Simple economic thinking establishes that a negative correlation between Fed rate and deficit arises whenever the two policy authorities share a common stabilization objective. However, when budget balancing concerns lead to a drastic deficit reduction the Fed may reduce the Fed rate in order to smooth the impact of fiscal policy, which results in a positive correlation between these two policy instruments. The empirical results show (i) a significant negative comovement between Fed rate and deficit and (ii) that deficit and output gap Granger-cause the Fed funds rate during the post-Volcker era, but the opposite is not true. | es |
dc.description.sponsorship | Financial support from Ministerio de Ciencia y Tecnología, Fundación BBVA and Universidad del País Vasco (Spain) through projects SEJ2004-04811/ECON, 1/BBVA 00044.321-15466/2002 and 9/UPV00035.321-13511/2001, respectively, is also acknowledged. | es |
dc.language.iso | eng | es |
dc.publisher | University of the Basque Country, Department of Foundations of Economic Analysis II | es |
dc.relation | info:eu-repo/grantAgreement/MCYT/SEJ2004-04811-ECON | |
dc.relation.ispartofseries | DFAEII 2008.06 | |
dc.rights | info:eu-repo/semantics/openAccess | es |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-sa/3.0/ | * |
dc.subject | fed rate | es |
dc.subject | deficit | es |
dc.subject | comovement | es |
dc.subject | switching regimes | es |
dc.title | The Comovement between Monetary and Fiscal Policy Instruments during the Post-War Period in the U.S. | es |
dc.type | info:eu-repo/semantics/workingPaper | es |
dc.rights.holder | Attribution-NonCommercial-ShareAlike 3.0 Unported | * |
dc.subject.jel | C32 | |
dc.subject.jel | E52 | |
dc.subject.jel | E62 | |
dc.identifier.repec | RePEc:ehu:dfaeii:2008.06 | es |
dc.departamentoes | Fundamentos del análisis económico II | es_ES |
dc.departamentoeu | Ekonomia analisiaren oinarriak II | es_ES |
dc.subject.categoria | MATHEMATICAL AND QUANTITATIVE METHODS | |
dc.subject.categoria | ECONOMICS, ECONOMETRICS AND FINANCE | |
dc.subject.categoria | MACROECONOMICS AND MONETARY ECONOMICS | |