This Economic Letter summarizes the papers presented at a conference on “Fiscal and Monetary Policy” held at the Federal Reserve Bank of San Francisco on March 4 and 5, 2005. The papers are listed at ...

Since the Global Financial Crisis, fiscal policy in advanced economies has become more “active” – that is, increasingly unresponsive to rising debt levels. This paper explores tensions between active ...

Against the backdrop of elevated inflation and record-high levels of public debt amid rising interest rates, it presented approaches on how to design, calibrate, and coordinate monetary and fiscal ...

From 2008 through 2019, both fiscal policy and monetary policy greatly affected markets and the economy. From 2020 to the present, fiscal policy has been the more dominant side of the equation.

Budgeting – the way governments tax and spend – falls within the domain of fiscal policy. In contrast, the management of credit and interest rates falls into the domain of monetary policy.

It’s fair to say that the ethos of sound fiscal and monetary policy started with none other than Alexander Hamilton. In his January 1790 Report on Public Credit, Hamilton advocated for fully funded ...

Jonathan E. Leightner, How US Fiscal and Monetary Policy affect the GDP of Countries with Fixed and Flexible Exchange Rates, Journal of Economic Integration, Vol. 39, No. 1 (March 2024), pp. 86-106 ...

Essentially, the Fed is putting the brakes on the economy and fiscal policy set by the government is pushing on the accelerator. In retrospect, that stimulus has caused our GDP to grow by a robust ...

The federal government routinely uses government spending and taxes to help offset the highs and lows of the U.S. business cycle. While government spending typically increases during a recession, the ...

While Bangladesh recovered strongly from the COVID-19 pandemic, post-pandemic recovery was hindered by rising inflation, a persistent balance of payments deficit, financial sector vulnerabilities, and ...

Fiscal policy has a much more profound and immediate impact on the stock market. The fiscal fund flows and spending has been, on balance, solid since October 2022 and July 2023.

On balance, the post-surge exchange-rate rally has compressed import prices and, together with tight monetary policy, helped curb inflation. Consumer prices peaked near 25% year-on-year in late ...