Government monetary and fiscal operations: generalising the endogenous money approach
Eric Tymoigne
Cambridge Journal of Economics, 2016, vol. 40, issue 5, 1317-1332
Abstract:
The traditional endogenous money approach can be generalised substantially by including the insights of Modern Money Theory regarding the necessary coordination of fiscal and monetary policies. A monetarily sovereign government is composed of two entities involved in the issuance and redemption of government monetary instruments. As such, one should include the role of the Treasury in monetary policy and the role of the central bank in fiscal policy. The paper suggests a simple way to model that interaction, shows some of the theoretical insights that can be drawn from that interaction and illustrates the relevance of that interaction with the monetary and fiscal practices of the US Treasury and the Federal Reserve over the past century. Times of stress in the monetary system, such as the recent Great Recession, usually bring to light more forcefully this necessary interaction.
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (12)
Downloads: (external link)
http://hdl.handle.net/10.1093/cje/bew012 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:cambje:v:40:y:2016:i:5:p:1317-1332.
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
Cambridge Journal of Economics is currently edited by Jacqui Lagrue
More articles in Cambridge Journal of Economics from Cambridge Political Economy Society Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().