Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

1999

Journal or Book Title

Economic and Financial Review

First Page or Article ID Number

26

Last Page

36

Abstract

Standard undergraduate textbooks often cast monetary policy and fiscal policy as separable undertakings. Such a split does seems natural; after all, the players involved are different entities. In the United States, for instance, monetary policy decisions are made by the Federal Reserve, while fiscal policies come under the purview of the federal government. A direct consequence of this “split personality” view of policy action is that it gives monetary policy sole authority over short-term nominal interest rates and/or money growth rates, while fiscal policy gets the final say on tax rates and transfer payment schedules. Indeed, in the monetarist– Keynesian debate, this separatist tradition asks which class of policies is more effective at managing economic activity.

Comments

This article is published as Monetary Policy Arithmetic: Some Recent Contributions (with J. Haslag); Federal Reserve Bank of Dallas Economic and Financial Review, 3rd qtr, 26-36, 1999.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

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