Coordination of Monetary and Fiscal Policies

International Monetary Fund

No 1998/025, IMF Working Papers from International Monetary Fund

Abstract: Recently, monetary authorities have increasingly focused on implementing policies to ensure price stability and strengthen central bank independence. Simultaneously, in the fiscal area, market development has allowed public debt managers to focus more on cost minimization. This “divorce” of monetary and debt management functions in no way lessens the need for effective coordination of monetary and fiscal policy if overall economic performance is to be optimized and maintained in the long term. This paper analyzes these issues based on a review of the relevant literature and of country experiences from an institutional and operational perspective.

Keywords: WP; monetary management; government securities; exchange rate; budget deficit; debt service; fiscal policy mix; government cash balance; Monetary policy; Fiscal policy; Coordination; fiscal policy coordination; debt management instrument; fiscal policy adjustment; debt management procedure; Government debt management; Monetary base; Central bank credit; Global (search for similar items in EconPapers)
Pages: 32
Date: 1998-03-01
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Citations: View citations in EconPapers (14)

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