Inflation Targeting, Fiscal Rules and the Policy Mix: Cross-effects and Interactions

Jean-Louis Combes, Xavier Debrun, Alexandru Minea and René Tapsoba

Post-Print from HAL

Abstract: We examine how inflation targeting (IT) and fiscal rules (FR) affect inflation and fiscal performance in a large panel of countries during 1990–2009. In line with theory, both FR and IT appear to shape monetary and fiscal outcomes. Significant cross-effects seem to exist as IT strengthens fiscal performance, whereas the combination of FR and IT tends to be associated with more disciplined macroeconomic policies than if only one of these institutions operates. Our findings suggest that IT and FR affect the coordination of the policy mix, and point to potential benefits of reforming macroeconomic frameworks in a holistic fashion.

Date: 2017-11-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published in The Economic Journal, 2017, ⟨10.1111/ecoj.12538⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Inflation Targeting, Fiscal Rules and the Policy Mix: Cross‐effects and Interactions (2018)
Working Paper: Inflation Targeting, Fiscal Rules and the Policy Mix: Cross‐effects and Interactions (2018)
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:hal:journl:hal-01682693

DOI: 10.1111/ecoj.12538

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().