Thesis (Ph. D.)--University of Illinois at Urbana--Champaign, 1997. / Vita. Includes bibliographical references (leaves 110-114).

Thesis (Ph.D.) - University of St Andrews, February 2008.

Thesis (Ph. D.)--University of Missouri-Columbia, 1999. / Typescript. Vita. Includes bibliographical references (leaves 167-174). Also available on the Internet.

Thesis (Ph. D.)--University of Missouri-Columbia, 1999. / Typescript. Vita. Includes bibliographical references (leaves 167-174). Also available on the Internet.

This thesis consists of three essays on the discretionary interactions of fiscal and monetary policy authorities when they stabilise a single economy against shocks in the dynamic setting. In the first essay, I investigate the stabilization bias that arises in a model of noncooperative monetary and fiscal policy stabilisation of the economy, when the monetary authority implements price level targeting but fiscal authority remains benevolent. I demonstrate that the gain in welfare depends on the level of steady state debt. If the steady state level of the government debt is relatively low, then the monetary price level targeting unambiguously leads to social welfare gains, even if the fiscal authority acts strategically and faces different objectives and has incentives to pursue its own benefit and therefore may offset some or all of monetary policy actions. Moreover, if the fiscal policymaker is able to conduct itself as an intra-period leader then the social welfare gain of the monetary price level targeting regime can be further improved. However, if the economy has a relatively high steady state debt level, the gain of the price level targeting is outweighed by the loss arising from the conflicts between the policy makers, and such policy leads to a lower social welfare than under the cooperative discretionary inflation targeting. In the second essay I study the macroeconomic effect of the interaction between discretionary monetary policy which re-optimises every period and discretionary fiscal policy which reoptimises less frequently. I demonstrate the existence of two discretionary equilibria if the frequency of fiscal policy re-optimizes annually while monetary policy adjusts quarterly. Following a disturbance to the debt level, the economy can be stabilised either in a ‘fast but volatile‘ or ‘slow but smooth’ way, where both dynamic paths satisfy the conditions of optimality and time-consistency. I study several delegation regimes and demonstrate that the policy of partial targeting the debt level results in far worse welfare outcomes relative to a strict inflation targeting policy. In the third essay, I extend the framework developed in the second essay to the case with Blanchard-Yaari type of consumers. This brings in two effects. First, an increase in debt results in higher consumption via the wealth effect, the marginal cost is higher so the need for higher interest rate and higher taxation will increase, therefore the dynamic complementarity between actions of the two policymakers become stronger. Second, higher inflation affects consumption via the average propensity to consume and this effect is likely to weaken the dynamic complementarity. I show that when the households are assigned a mortality rate, overall the first effect dominates the second. The transition paths of the economic variables back to the steady state will be more volatile and the multiple equilibriums are more likely to arise.

The purpose of this diploma thesis is to examine the impact of monetary and fiscal policy upon business cycle and the long term growth on the example of Swiss economy. The research approach is the analysis of monetary and fiscal indicators related with gross domestic product. Theoretical part explains business cycle theories, which consider cause of economic fluctuations in monetary and fiscal policy and further describes stabilization role of this particular policies and develop relevant problems within it. In practical part there is conducted research of monetary and fiscal influence upon Swiss business cycle with eligible indicators. The final part summarizes the most important knowledge and provides appropriate recommendations to reduce cyclical volatility of the product and to create a suitable economic and political framework for a functioning economy in the long term.

This dissertation thesis is focused on the empirical analysis of monetary and fiscal policy using nonlinear models. In the first part, I examine the evolution of monetary policy rules in a group of inflation targeting countries. I apply a moment-based estimator in a time-varying parameter model with endogenous regressors. The main findings are twofold. First, with adoption of inflation targeting, coefficients in the monetary policy rules changed rather gradually. Second, the response of interest rates to inflation is particularly strong during periods when central bankers want to break a record of high inflation. Contrary to common view, the response of interest rates to inflation becomes less aggressive after the adoption of inflation targeting, suggesting a positive anchoring effect of this regime on inflation expectations. The second part discusses whether and how the selected central banks responded to episodes of financial stress over the last three decades. The time-varying monetary policy rule is extended for an indicator of financial stress, in order to show the departures of policy rules under financial instability. The findings suggest that central banks often decrease policy rates in the face of high financial stress. However, the size of the policy response varies substantially over time as well...

Gli studi sulla politica monetaria e fiscale suggeriscono che l'economia sommersa o informale è un potente cuscinetto in grado di assorbire i canali di trasmissione delle politiche macroeconomiche. In questo lavoro, sviluppiamo un modello DSGE con economia sommersa al fine di analizzarne l’impatto sui canali di trasmissione delle politiche monetarie e fiscali nei paesi emergenti e in via di sviluppo. La tesi è organizzata in tre capitoli. Il primo capitolo cerca di esaminare gli effetti di trasmissione e l'efficacia della politica monetaria e di altri shock strutturali attraverso l’interazione con l’economia sommersa. Il nostro modello determina se la presenza di un'economia sommersa influisce sulle risposte dell'economia ufficiale e chiarisce anche i cambiamenti nel meccanismo di trasmissione all'interno di entrambi i settori. Il secondo capitolo descrive un nuovo modello DSGE keynesiano con economia sommersa e analizza il ruolo delle politiche fiscali sul ciclo economico aggregato. In questo capitolo, abbiamo cercato di chiarire se la presenza di un'economia sommersa riduca o incrementi l'effetto delle trasmissioni di politica fiscale. Abbiamo anche cercato di capire se le politiche fiscali possono essere utilizzate per stabilizzare l'economia in risposta agli shock. Nel terzo capitolo, studiamo l'interazione tra i consumatori e la presenza di un'economia sommersa focalizzandoci sugli shock della politica fiscale. L‘obiettivo è sapere se l'introduzione di un'economia sommersa indebolisca l'effetto amplificativo dei consumatori sul moltiplicatore fiscale. / Theoretical literature on monetary and fiscal policy have suggested that shadow economy or the informal sector is a powerful buffer which absorbs large proportions of the transmission channels of macroeconomic policies. We develop a theoretical DSGE model with shadow economy and investigate their impact on the transmissions of monetary and fiscal policies in developing and emerging countries. The thesis is organised in three chapters as follows. Chapter one seeks to examine the transmission effects and efficacy of monetary policy and other structural shocks with the interaction of shadow economy. Our model determines whether the presence of shadow economy affects the responses of the official economy and also clarifies the changes in the transmission mechanism within both sectors. The second chapter describes a new Keynesian DSGE model with shadow economy and investigate the role of fiscal policies over the aggregate business cycle. In this chapter, we sought to elucidate whether the presence of shadow economy dampens or amplifies the effect of fiscal policy transmissions. We further tried to understand whether fiscal policies can be used to stabilise the economy in response to shocks. In chapter three, we study the interplay of rule-of-thumb consumers and the presence of shadow economy focusing on fiscal policy disturbances. Our basic motivation is to know whether the incorporation of shadow economy weakens the amplifying effect of rule-of-thumb consumers on fiscal multipliers.

My thesis is reflecting the economic progress in USA after a year 2000. The first part of my thesis is describing the most important topics in the economic program of G.W. Bush. The next part of my work is analyzing the decision of G.W. Bush as a president and how they are reflected the economic program. This part is divided in three chapters: taxes, military expenditures and monetary policy. At the end of my thesis I compare and evaluate the economic program and the real decision of the George W. Bush. I also describe influence these decision on the economic of USA.

This theses focuses on evaluation of major developments in czech economic policy since 1997 - financial crises in 1997, inflation targeting, incentives and foreign direct investments in CZ and problems of czech public finances.