scholarly journals Masters of the ‘masters of the universe’? Monetary, fiscal and financial dominance in the Eurozone

2019 ◽  
Vol 18 (2) ◽  
pp. 315-335 ◽  
Author(s):  
Sebastian Diessner ◽  
Giulio Lisi
Keyword(s):  
Fiscal Policy ◽  
Central Banks ◽  
Qualitative Understanding ◽  
Fiscal Dominance ◽  
The Status ◽  
Quantitative Text Analysis ◽  
Monetary And Fiscal Policy ◽  
Central Bankers ◽  
The Universe

Abstract The rise of central bankers to the status of new ‘masters of the universe’ has been matched by mounting allegations of political overreach. In the Eurozone, for instance, the European Central Bank has increasingly been accused of straying into the fiscal realm. Why do politically independent central banks engage intensely and publicly with government policies, thereby threatening the neat separation between monetary and fiscal policy that was meant to protect central banks themselves from interference? While existing political economy accounts have focused squarely on the issues of government debt and central bankers’ fears of fiscal dominance, we argue for the emerging role of ‘financial dominance’ throughout the crisis, thereby shedding light on the structural forces that master the new masters of the universe. To this end, we pursue a mixed-methods approach, combining quantitative text analysis techniques with a qualitative understanding of the context in which central banks communicate on fiscal policy.

Interakcje polityki pieniężnej i fiskalnej a niezależność banku centralnego – przegląd możliwych podejść modelowych w badaniach empirycznych

2020 ◽  
Author(s):  
Ryszard Kokoszczyński ◽  
Joanna Mackiewicz-Łyziak
Keyword(s):  
Fiscal Policy ◽  
Price Level ◽  
Empirical Studies ◽  
Central Banks ◽  
Overwhelming Majority ◽  
Monetary Policies ◽  
Sustainable Policy ◽  
Monetary And Fiscal Policy ◽  
Simple Models

There are numerous theoretical and empirical studies on interactions between monetary and fiscal policy. Even if the independence of central banks affects those interactions, it has rarely been directly included in those studies. In this chapter, we present two general approaches to empirical studies on interactions between those two policies and the possibilities for inclusion of independence of central banks in their modelling. Generally, the first approach has poor theoretic background and relies on simple models describing rules for fiscal and monetary policies. Those models also include proxies for some aspects of fiscal policy. Similarly, some simple measures usually address the independence of central banks. The second approach most often roots in the fiscal theory of the price level. The overwhelming majority of presented studies report a significant impact of the central banks’ independence in the form of a more sustainable policy using the first approach.

The Role and Effectiveness of Fiscal Policy

2005 ◽  
Vol 16 (1) ◽  
pp. 17-41 ◽  
Author(s):  
Neil Hart
Keyword(s):  
Fiscal Policy ◽  
Interest Rate ◽  
Macroeconomic Policy ◽  
Central Banks ◽  
Policy Formulation ◽  
Endogenous Money

A meaningful discussion of the role and effectiveness of fiscal policy is not possible within the context of the antiquated textbook models, which in their current and likely future form (the ‘New Neo-Classical Synthesis) have been used to endorse the deflationary bias in macroeconomic policy formulation during recent decades. This paper present a critique of the ‘mainstream’ textbook modelling of fiscal policy, and suggests a more meaningful framework in which to consider the role of fiscal policy; a framework which in particular recognises the realities of endogenous money and interest rate targeting by central banks.

scholarly journals How Does a Thought Scream? The Possibility of the New as a Condition of Political Ontology in Gilles Deleuze’s The Time-Image

2020 ◽  
Vol 31 (5) ◽  
pp. 103-130
Keyword(s):  
Critical Distance ◽  
Status Quo ◽  
The Political ◽  
Political Ontology ◽  
Cinema Studies ◽  
The Status ◽  
The Difference ◽  
Time Image ◽  
The Universe

The paper deals with Gilles Deleuze’s The Time-Image not as an essay on the philosophy of cinema but as a theory of political ontology. The meaning of the concept of “scream” must first be clarified. This concept appears in Deleuze’s lectures from 1980 in the context of the sequence of cinema, thought and shock from the second volume of his book Cinema. To indicate the immanent political significance of Deleuze’s cinema studies, the article clarifies the conceptual difference between two types of cinema. The distinction between “the movement-image” and “the time-image” is examined as ontological rather than aesthetic. In particular, the paper shows the conservative effects of “classic” cinema in the context of Henri Bergson’s ontology. The critical potential of modern cinema, which Deleuze considers in The Time-Image, is a condition for undermining the logic of “habit,” which is reproduced by the cinema of “the movement-image.” The condition for a break with this logic is the effect of shock, which is produced by the distinctive characteristics of modern cinema. Deleuze finds the political significance of modern cinema in the context of the possibility of the New which is not predetermined by previous conditions. The rupture with the status quo is ensured by contrasting two concepts of the Whole viewed either as the Open or as the Outside. The difference between them is examined in connection with the critical distance from the ontology of Henri Bergson, which is an imaginary solution of the problem of the New and therefore the problem of conservatism in the universe of “classic” cinema. In order to identify the political significance of “the image-time,” it is necessary to indicate the constitutive role of temporal rupture in modern cinema. It is this logic that provides the effect of shock for thought and allows it to break away from permanent repetition.

Monetary and Fiscal Policy Coordination During the Fiscal Dominance Regimes

2020 ◽  
Author(s):  
Vighneswara Swamy
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Interaction Model ◽  
Policy Coordination ◽  
Jel Classification ◽  
Bond Yields ◽  
Vector Error Correction ◽  
Policy Effect ◽  
Fiscal Dominance ◽  
Monetary And Fiscal Policy

Abstract This study evaluates the conduct of monetary and fiscal policies for the post-liberalization period 2005: Q1–2017: Q1 in India and explores the need for coordination. As quantifying the extent of coordination, mostly depends on the appropriate policy mix that responds effectively to different shocks, this study empirically examines the interaction between monetary and fiscal policy by using Vector Auto Regressions (VAR) and a Vector Error Correction Model (VECM). Further, this study discusses the Stackelberg interaction model with government leadership to know the strategic interaction between monetary and fiscal policy. The estimates show that an unexpected increase in the monetary policy effect: (i) has a contractionary impact on the economic growth; (ii) leads to a gradual decline in the inflation; (iii) tightens the liquidity conditions; and (iv) rise in the bond yields. On the other hand, an unexpected increase in the fiscal policy effect: (i) has a positive effect on GDP growth; (ii) has an initial decline, but a gradual rise in the inflation levels; and (iii) leads to falling bond yields. Monetary policy is found to be more responsive to fiscal policy effects. The results imply that there is a greater need for effective coordination between monetary and fiscal policy as a sufficient condition to achieve economic stability.JEL Classification: C32; E31; E52; E62; E63

Monetary and Fiscal Policy in Europe: an Overview

2000 ◽  
Vol 174 ◽  
pp. 63-67 ◽  
Author(s):  
Ray Barrell ◽  
Nigel Pain
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Price Level ◽  
Reference Value ◽  
Medium Term ◽  
Type Representation ◽  
Growth Pact ◽  
The Stability ◽  
Monetary And Fiscal Policy

There are new monetary and fiscal frameworks in place for the countries in the Euro Area. The European Central Bank has a remit to maintain price level stability in the medium term, and it has developed a two pillar strategy, with interest rates being set in relation to a reference value of M3 and general (inflationary) conditions. We discuss an ideal type representation of this framework and examine the potential effects of a fall in the euro. Fiscal policy in Europe is now based on guidelines from the Stability and Growth Pact and we discuss the role of commitment in this framework as well

scholarly journals Integration of Monetary and Fiscal Policy of the Countries of the Visegrad Group

2014 ◽  
Vol 14 (3) ◽  
pp. 197-213
Author(s):  
Stanislav Kappel ◽  
Jan Janků
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Fiscal Policy ◽  
Successful Implementation ◽  
The Czech Republic ◽  
Conflict Situations ◽  
Wide Range ◽  
Monetary And Fiscal Policy ◽  
Visegrad Group

Abstract The aim of this paper is to evaluate mutual interaction of monetary and fiscal policies in the countries of the Visegrad group, i.e. in the Czech Republic, Slovakia, Poland and Hungary. The relationship of monetary and fiscal policy - their coordination, cooperation or mutual antagonism - are basic determinants of successful implementation for economic policy of the state. Fiscal and monetary policies usually have different aims, and some conflict situations may arise in practical economic and political decision- making. Each policy has to make its decision with regard to the other one. Methodical approaches of this contribution are based on the game theory, which deals with the analysis of a wide range of decision situations with more participants (players) and it is primarily focused on the conflict situations. This game-theoretical approach is responsible for creating the theoretical model which is then dealt with in the empirical analysis. We find a distinctly stabilizing role of monetary policy and relatively problematic stabilizing role of fiscal policy in the analyzed countries. The dominant role of monetary policy is statistically confirmed in the case of the Czech Republic and Hungary.

scholarly journals PERHITUNGAN TINGKAT UTANG MAKSIMAL PEMERINTAH SEBAGAI ACUAN BAGI KEBIJAKAN MONETER DI INDONESIA

2013 ◽  
Vol 2 (1) ◽  
pp. 81
Author(s):  
Doni Satria
Keyword(s):  
Fiscal Policy ◽  
Government Debt ◽  
Stabilization Policy ◽  
Government Budget ◽  
Macroeconomic Stabilization ◽  
Indonesian Government ◽  
Dominance Condition ◽  
Fiscal Dominance ◽  
The Government ◽  
Monetary And Fiscal Policy

The interaction of monetary and fiscal policy in an economy played an important role for macroeconomic stabilization policy. Blanchard (1990) has shown the fiscal domination condition in this policy interaction, fiscal dominance condition could be caused by the accumulation of government debt. This research analyzed the maximum debt that can be accumulated by the government, and still be sustained and could not drag the economy to the fiscal dominance condition. Using the Mendoza and Oviedo (2004) model, we find the maximum accumulated government debt is 45.2 percent of Indonesia GDP. This result is based on the 20 percent of expenditure adjustment of Indonesian government budget

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