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Monetary-fiscal policy interaction and fiscal inflation : a tale of three countries

Kliem, Martin; Kriwoluzky, Alexander; Sarferaz, Samad - 2015

We study the impact of the interaction between fiscal and monetary policy on the low-frequency relationship between the fiscal stance and inflation using crosscountry data from 1965 to 1999. In a first step, we contrast the monetary-fiscal narrative for Germany, the U.S. and Italy with evidence...