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Interactions between fiscal and monetary policies: a brief history of a long relationship*
Dubravko Mihaljek*
Article | Year: 2021 | Pages: 419 - 432 | Volume: 45 | Issue: 4 Received: October 15, 2021 | Accepted: October 31, 2021 | Published online: September 6, 2021
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FULL ARTICLE
FIGURES & DATA
REFERENCES
CROSSMARK POLICY
METRICS
LICENCING
PDF
1 Including health and non-health related spending measures announced through March 2021, based on IMF’s Fiscal Policies Database. For the European Recovery and Resilience Facility, 50% of grants assumed to be spent in 2021. Sources: European Commission; IMF, Fiscal Policies Database; OECD; author’s calculations.
1 Total as sets; median values for eight advanced economies (AEs) and 22 emerging market economies (EMEs). EMEA = emerging Europe, Middle East and Africa. Sources: IMF; national data; BIS, Database on monetary policy announcements during Covid-19; Cantu et al. (2021).
|
General government deficit
|
Gross public debt
|
|
2019
|
2020
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2021
|
2019
|
2020
|
2021
|
Euro
area
|
–0.6
|
–7.6
|
–6.7
|
84
|
97
|
98
|
France
|
–3.0
|
–9.9
|
–7.2
|
98
|
114
|
115
|
Germany
|
1.5
|
–4.2
|
–5.5
|
60
|
69
|
70
|
Spain
|
–2.9
|
–11.5
|
–9.0
|
96
|
117
|
118
|
Italy
|
–1.6
|
–9.5
|
–8.8
|
135
|
156
|
157
|
Japan
|
–3.1
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–12.6
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–9.4
|
235
|
256
|
257
|
United
Kingdom
|
–2.3
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–13.4
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–11.8
|
85
|
104
|
107
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United
States
|
–5.7
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–15.8
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–15.0
|
108
|
127
|
133
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Brazil
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–5.9
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–13.4
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–8.3
|
88
|
99
|
98
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China
|
–6.3
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–11.4
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–9.6
|
57
|
67
|
70
|
India
|
–7.4
|
–12.3
|
–10.0
|
74
|
90
|
87
|
South
Korea
|
0.4
|
–3.1
|
–2.7
|
42
|
48
|
53
|
Mexico
|
–2.3
|
–4.6
|
–3.4
|
53
|
61
|
61
|
Russia
|
1.9
|
–4.1
|
–0.8
|
14
|
19
|
18
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Turkey
|
–6.4
|
–7.4
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–7.1
|
32
|
40
|
40
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South
Africa
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–5.3
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–12.2
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–10.6
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62
|
77
|
81
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Source: IMF (2021c).
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Monnet, E., 2012. Financing a Planned economy: institutions and credit allocation in the French golden age of growth, 1954–1974 . Berkeley Economic History Laboratory Working Paper, September [ CrossRef]
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Sargent, T. and Wallace, N., 1981. Some unpleasant monetarist arithmetic. Federal Reserve Bank of Minneapolis Quarterly Review, Fall [ CrossRef]
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Stein, J., 2013. Overheating in credit markets: origins, measurement, and policy responses. Speech at a Federal Reserve Bank of St. Louis Research Symposium, 7 February.
Weidmann, J., 2020. Too close for comfort? The relationship between monetary and fiscal policy. Speech at the OMFIF Virtual Panel, 5 November.
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December, 2021 IV/2021 |