Forschungsarbeit, 2010
21 Seiten, Note: A
This paper investigates the significance of monetary and fiscal policies in the international context, aiming to understand the relationship between these policies and the extent to which their coordination can be achieved. The study explores the impact of coordination on economic variables such as inflation, unemployment, interest rates, and output.
This paper focuses on the key concepts of monetary policy, fiscal policy, coordination, monetary bliss, fiscal bliss, and their implications for economic stability and performance. It also explores the theoretical and practical aspects of policy games and their application in analyzing policy interactions.
The study investigates the relationship between central banks (monetary policy) and governments (fiscal policy) and how their coordination can help address national deficits and economic stability.
Coordination is crucial to manage variables like inflation, unemployment, and interest rates effectively, especially during financial crises where isolated policies might conflict.
Based on Nordhaus's diagram, it's a theoretical framework that analyzes the strategic interactions and potential conflicts between the central bank's goals and the government's fiscal objectives.
These terms refer to the ideal economic states targeted by each policy arm. The research explores the extent to which these goals can be harmonized to reach an overall economic equilibrium.
In most economies, the Central Bank conducts monetary policy, while the Ministry of Finance or National Planning department is responsible for fiscal policy.
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