Bianchi, Francesco; Ilut, Cosmin - C.E.P.R. Discussion Papers - 2013
the monetary/fiscal policy mix. We find that the fiscal authority was the leading authority in the '60s and the '70s. The … appointment of Volcker marked a change in the conduct of monetary policy, but inflation dropped only when fiscal policy … inflationary only when monetary policy accommodates fiscal policy. The reversal in the debt-to-GDP ratio dynamics, the sudden drop …