How does the fiscal framework affect the central bank's ability to stabilize output and inflation? The textbook answer, which assumes Ricardian households, recommends that fiscal adjustment should be ...

Monetary and fiscal policy respond to economic conditions, with the appropriate response dependent on the balance of supply and demand in goods and services markets and capital markets. Monetary ...

The economic importance of fiscal policy has grown since the start of pandemic and at this juncture there are no easy choices for central bankers. Central banks purchased large amounts of government ...

Explore how fiscal policy and monetary policy drive aggregate demand, influencing economic growth through spending, taxation, and money supply changes.

Politicians, policy wonks and pundits like to classify as economic “stimulus” the $6 trillion in recent deficit spending and Federal Reserve money creation. But subsidies for the jobless, bailouts of ...

Forbes contributors publish independent expert analyses and insights. I cover global and domestic health care and conservation. The COVID-19 pandemic has had significant impact on our domestic economy ...

When you ask economists what they think about the Federal Reserve’s monetary policy, as in interest rates, a growing number of them will tell you that rates are restricting the economy too much right ...

Monetary policy guides inflation and economic growth. Learn what it means, the main types, and how central banks manage interest rates and stabilize the economy.

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation The initial government debt-to-GDP ratio and the government’s commitment play a pivotal role in determining the ...