Hostname: page-component-77c89778f8-fv566 Total loading time: 0 Render date: 2024-07-24T12:02:43.675Z Has data issue: false hasContentIssue false
  • English
  • Français

The Conduct of Fiscal Policy

Published online by Cambridge University Press:  26 March 2020

David Currie
David Currie*
Affiliation:
Queen Mary College, University of London and NIESR
Get access Rights & Permissions [Opens in a new window]

Extract

The central focus of this paper is on the conduct of fiscal policy. But the influence of fiscal policy cannot sensibly be examined separately from other aspects of macroeconomic policy, such as monetary, exchange rate and incomes policies. Because of this, we the opportunity to range quite widely. Two broad themes emerge. The first concerns the consequences of consistent forward-looking expectations for the design of policy. The second concerns the global consequences of adopting generally in many countries policy rules designed in the single open economy context. Since policy appraisal is usually conducted in the single economy context, and policy design with consistent expectations is still relatively underdeveloped, it is useful to take stock of these two issues.

Type
Articles
Information
National Institute Economic Review , Volume 113 , August 1985 , pp. 81 - 88
Copyright
Copyright © 1985 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Atkinson, P. and Chouraqui, J-C. (1985), ‘Real Interest Rates and the Prospects for Durable Growth’, OECD Working Papers, no. 21.Google Scholar
Backus, D. and Driffill, J. (1985a), ‘Rational Expectations and Policy Credibility Following on Change in Regime’, Review of Economic Studies.CrossRefGoogle Scholar
Backus, D. and Driffill, J. (1985b), ‘Policy Credibility and Unemployment in the UK’, in D.A. Currie (ed.), Advances in Monetary Economics, Croom Heim.Google Scholar
Blanchard, O.J. and Summers, L.J. (1984), ‘Perspectives on High World Real Interest Rates’, Brookings Papers on Economic Activity, pp. 273–324.CrossRefGoogle Scholar
Blinder, A.S. and Solow, R.M. (1973), ‘Does Fiscal Policy Matter?’, Journal of Public Economics, vol. 2, pp. 319–37.CrossRefGoogle Scholar
Christ, C. (1979), ‘On Fiscal and Monetary Policies and the Government Budget Restraint’, American Economic Review, vol. 69, pp. 526–38.Google Scholar
Cohen, D. and Michel, P. (1984), ‘Towards a Theory of Optimal Pre-Commitment I: An Analysis of the Time-Consistent Equilibria’, paper presented to the CEPR Conference on the European Monetary System, Manchester, September.Google Scholar
Currie, D. (1978), ‘Macroeconomic Policy and Government Financing: A Survey of Recent Developments’, in M. J. Artis and A. R. Nobay (eds), Studies in Contemporary Economic Analysis, vol. 3, Croom Heim.Google Scholar
Currie, D. and Levine, P. (1985a), ‘Macroeconomic Policy Design in an Interdependent World’, in W. H. Buiter and R. C. Marston (eds), International Economic Policy Coordination, Cambridge University Press.Google Scholar
Currie, D. and Levine, P. (1985b), ‘Simple Macropolicy Rules for the Open Economy’, Economic Journal, vol. 95, supplement, pp. 60–70.CrossRefGoogle Scholar
Currie, D. and Levine, P. (1985c), ‘Credibility and Pre-commitment in a Stochastic World’, Queen Mary College PRISM Discussion Paper no. 36, presented to the Conference on Economic Dynamics and Control, London, June.Google Scholar
Friedman, M. (1948), ‘A Monetary and Fiscal Framework for Economic Stability’, American Economic Review, vol. 38, pp. 245–64.Google Scholar
Hall, S.G. (1985), ‘A Forward-Looking Model of the Exchange Rate’, National Institute Discussion paper, no. 91.Google Scholar
Hamada, K. (1974). ‘Alternative Exchange Rate Systems and the Interdependence of Monetary Policies’, in Robert Z. Aliber (ed.), National Monetary Policies and International Financial System, University of Chicago Press, Chicago.Google Scholar
Kydiand, F.E. and Prescott, E.C. (1977), ‘Rules versus Discretion: The Inconsistency of Optimal Plans’, Journal of Political Economy, vol. 85, pp. 473–91.Google Scholar
Levine, P. (1984), ‘Problems of Implementing Macroeconomic Policy as an Optimal Feedback Rule when Expectations are Rational’, Queen Mary College PRISM Discussion Paper no. 32.Google Scholar
Levine, P. and Currie, D. (1983), ‘Optimal Feedback Rules in an Open Economy Macromodel with Rational Expectations’, Queen Mary College PRISM Discussion Paper no. 5; European Economic Review, forthcoming 1985.Google Scholar
Levine, P. and Currie, D. (1984), ‘The Design of Feedback Rules in Linear Stochastic Rational Expectations Models’, Queen Mary College PRISM Discussion Paper no. 20.Google Scholar
Meade, J.E. (1982), Stagfiation Vol. 1: Wage Fixing, Allen and Unwin, London.Google Scholar
Miller, M. and Salmon, M. (1985), ‘Policy Coordination and Dynamic Games’ in W. H. Buiter and R. C. Marston (eds), International Economic Policy Coordination, Cambridge University Press.Google Scholar
Nedo (1985), Investment in the Public Sector Built Infrastructure.Google Scholar
Price, R.W.R. and Muller, P. (1984), ‘Structural Budget indicators and the interpretation of Fiscal Policy Stance in OECD Economies’, OECD Economic Studies, no. 3, pp.27–72Google Scholar
Tobin, J. (1980), ‘Government Deficits and Capital Accumulation’, in David Currie and Will Peters (eds), Contemporary Economic Analysis, vol. 2, Croom Helm.Google Scholar
Vines, D., Maciejowski, J. and Meade, J. (1983), Stagflation Vol. 2: Demand Management, Allen and Unwin, London.Google Scholar
Weitzman, M.L. (1984), The Share. Economy, Harvard University Press, Cambridge, Mass.Google Scholar
Westaway, P. (1985), ‘Some Experiments with Simple Feedback Rules on the Treasury Model’, HM Treasury, mimeo.Google Scholar
Whittaker, R., Wren-Lewis, S., Blackburn, K. and Currie, D. (1985), ‘Alternative Financial Policy Rules in an Open Economy under Rational and Adaptive Expectations’, National Institute Discussion Paper, no. 94.Google Scholar