Effectiveness of Macroeconomic Policies in the Context of Closed and Open Economies

• Autorzy: N. Kubendran
• Języki publikacji: EN

Abstrakty

EN

Monetary policy and fiscal policy are the two important macroeconomic policies which are used to achieve certain major macroeconomic goals like economic growth, unemployment reduction, counteract inflation and overall economic development of the nation. The effect of macroeconomic variables may differ in terms of degree, duration, different economic systems and under different exchange rate regimes. This study analyses the effectiveness of monetary policy and fiscal policy on the economy in terms of economic integration and different exchange rate regimes. Regression analysis in this study found that the fiscal policy is more effective in a closed economy and monetary policy is more effective in an open economy. Also the study finds that the fiscal policy is more effective under managed float exchange rate regime and monetary policy is more effective under perfectly flexible exchange rate. So this study also validated Mundell- Fleming model.(original abstract)

Słowa kluczowe

EN

Monetary policy; Fiscal policy; Economic growth; Open economy

PL

Polityka pieniężna; Polityka fiskalna; Wzrost gospodarczy; Gospodarka otwarta

• Czasopismo: Journal of Economics & Management / University of Economics in Katowice
• Rocznik: 2016
• Numer: nr 25
• Strony: 30--47

Twórcy

autor

N. Kubendran

• School of Law Alliance University

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