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
Italy
Germany
Geneva
Genè
Switzerland
United-states
Spain
France
French
Spanish
American
German
A digital Nixon shock?
Aug 02,2021 - Last updated at Aug 02,2021
PRINCETON We are approaching the 50th anniversary of the so-called Nixon Shock, one the most decisive ruptures in monetary history. On August 15, 1971, US president Richard Nixon announced in a televised address that he was “closing the gold window”. By ending the dollar’s convertibility into gold (at an official rate of $35 per ounce), Nixon severed the millennia-long link between money and precious metals.
This epochal event has uncanny resonances today. For example, just as Nixon was struggling to extricate the United States from its long, costly and unwinnable war in Vietnam, US President Joe Biden has now ended America’s long, costly, and unwinnable intervention in Afghanistan.
Germany
Vietnam
Republic-of
Afghanistan
United-states
Washington
America
German
Harold-james
Jimmy-carter
Richard-nixon
Barack-obama