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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).
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General government deficit
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Gross public debt
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|
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2019
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2020
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2021
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2019
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2020
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2021
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Euro
area
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–0.6
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–7.6
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–6.7
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84
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97
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98
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France
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–3.0
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–9.9
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–7.2
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98
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114
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115
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Germany
|
1.5
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–4.2
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–5.5
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60
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69
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70
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Spain
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–2.9
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–11.5
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–9.0
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96
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117
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118
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Italy
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–1.6
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–9.5
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–8.8
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135
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156
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157
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Japan
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–3.1
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–12.6
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–9.4
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235
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256
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257
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United
Kingdom
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–2.3
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–13.4
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–11.8
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85
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104
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107
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United
States
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–5.7
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–15.8
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–15.0
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108
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127
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133
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Brazil
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–5.9
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–13.4
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–8.3
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88
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99
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98
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China
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–6.3
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–11.4
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–9.6
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57
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67
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70
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India
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–7.4
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–12.3
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–10.0
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74
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90
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87
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South
Korea
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0.4
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–3.1
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–2.7
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42
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48
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53
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Mexico
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–2.3
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–4.6
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–3.4
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53
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61
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61
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Russia
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1.9
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–4.1
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–0.8
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14
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19
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18
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Turkey
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–6.4
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–7.4
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–7.1
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32
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40
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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
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77
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81
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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
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