The aim of this paper is to analyze the dynamic interaction between monetary and fiscal policies in Indonesia for the period of 1999 - 2010. First, we propose the reaction function between monetary and fiscal policies. Second, we identify the main determinants of both interaction decisions, i.e....

Germany introduced a new fiscal rule, the ‘debt brake’, after the Global Financial Crisis and since then experienced a strong decline in its public debt to GDP ratio until the coronavirus pandemic struck. The past ten years and the reaction to the current crisis in Germany illustrate the...

This paper analyzes the effects of time-varying fiscal policy behavior on output and consumption multipliers within a monetary union. The framework is that of a standard New Keynesian twocountry model with distortionary taxes and Calvo price rigidities. I first show that multipliers differ...