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 ...

The divide between monetary and fiscal policy is starting to worry the nation's top economists even as the U.S. economy shows signs of stabilizing against inflation.

Fiscal dominance, in both theoretical and empirical terms, reflects a situation where fiscal imperatives subvert central bank autonomy, creating a context in which monetary policy becomes ...

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.

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 ...

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.

We must recognize that the road ahead may have many unforeseen turns, which calls for further strengthening financial and fiscal resilience and navigating with monetary policy clarity, credibility, ...

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.

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 ...

It’s not easy to conduct monetary policy when fiscal policy is perpetually reckless. The U.S. national debt is more than $30 trillion, which is about the value of all newly produced goods and ...

Since the creation of the Economic and Monetary Union (EMU), Eurozone countries have shared a common monetary policy, managed by the European Central Bank (ECB), but maintain independent fiscal ...

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 ...