Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model

1970 ◽  
Vol 84 (2) ◽  
pp. 197 ◽  
Author(s):  
William Poole
Keyword(s):  
Monetary Policy ◽  
Policy Instruments ◽  
Optimal Choice ◽  
Macro Model

scholarly journals Monetary incentives and fiscal policy mutual influence

VUZF Review ◽  
2021 ◽  
Vol 6 (4) ◽  
pp. 180-186
Author(s):  
Vitaliy Shapran
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Emerging Markets ◽  
Mutual Influence ◽  
Policy Instruments ◽  
Optimal Choice ◽  
Monetary Incentives ◽  
Fiscal Stimulus ◽  
Definition Of

The article considers the problems and practice of using the tools of monetary and fiscal stimulation of the economy. The main problems of the application of monetary instruments in practice in emerging markets are identified. The author paid special attention to the definition of classical monetary policy instruments and their role in economic growth in emerging markets. Critical assessment of the role of monetary policy instruments in stimulating economic growth is based on the practice of central banks in emerging markets. Recommendations for the analysis of the efficiency of monetary transmission are given. Problems of efficiency of application of fiscal stimulus instruments in emerging markets are raised. The mechanisms of the dependence between fiscal and monetary policies and the strengthening of such dependence in the case of a significant informal sector of the economy and an underdeveloped financial market are demonstrated. The author not only points out the need for coordination in choosing between monetary and fiscal policy but also advocates the idea of having an independent arbitrator between monetary and fiscal authorities in developing countries. The article also focuses on the analyzing algorithm of the use of monetary policy instruments for economic growth effectiveness. The conclusions made in the article will be especially useful for those who are interested in the issue of optimal choice between monetary and fiscal instruments to stimulate economic development in emerging markets.

Optimal choice of monetary policy instruments under velocity and fiscal shocks

2009 ◽  
Vol 26 (5) ◽  
pp. 865-877
Author(s):  
Rajesh Singh ◽  
Chetan Subramanian
Keyword(s):  
Monetary Policy ◽  
Policy Instruments ◽  
Optimal Choice ◽  
Fiscal Shocks
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