President Biden Announces 10 Key Nominations whitehouse.gov - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from whitehouse.gov Daily Mail and Mail on Sunday newspapers.
The topic of coordination between monetary and fiscal policy has become the focus of policy discussion in recent years (Draghi 2014, Lagarde 2020, Schnabel 2021). One reason is that there is limited space for traditional monetary policy based on steering the short-term interest rate when the latter is at (or close to) the effective lower bound (ELB). Many recent papers have advocated mechanisms to implement a coherent a monetary-fiscal policy mix (see, for example, the policy report by Barsch et al. 2021).
Empirically, there is limited knowledge about how the combination of monetary and fiscal policy affects inflation. This is a complex topic since there are multiple channels of interaction. Monetary policy, by affecting interest rates, output, and inflation, has an impact on the government’s budget constraint. The response of fiscal authorities via the adjustment of the primary deficit depends on the fiscal framework or the stabilisation objectives of fiscal authorities. The effe
Recent developments in pipeline pressures for non-energy industrial goods inflation in the euro area ecb.europa.eu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ecb.europa.eu Daily Mail and Mail on Sunday newspapers.
this post authored by Marek Ignaszak and Petr Sedlacek
To gauge the efficacy of policies aimed at spurring growth, we must first fully understand the sources of aggregate growth. This column argues that understanding the drivers of economic growth requires paying attention not only to productivity and R&D dynamics at the firm level, but also to changes in demand for firms’ products. The authors provide a new perspective on commonly used supply-side pro-growth policies and open the door to analysing demand-side policies such as public procurement or product market regulation, which have been present in the policy debate but have largely escaped academic circles.
Armon Rezai, Rick van der Ploeg
Recently the CEO of Black Rock, Larry Fink, made headlines by predicting that climate policies could lead to a large inflation shock.
1 This is of first order importance for all central banks, in particular in light of the ECBs’ new strategy focus on climate risks. Will a secular increase in the price of carbon (and carbon equivalents) put upward pressure on the price level? How large is this effect likely to be? How much does this effect depend on the reaction of monetary policy? Should central banks take such risks into account in their strategies?