Coordination of Monetary and Fiscal Policies

Publication Date:

March 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Recently, monetary authorities have increasingly focused on implementing policies to ensure price stability and strengthen central bank independence. Simultaneously, in the fiscal area, market development has allowed public debt managers to focus more on cost minimization. This “divorce” of monetary and debt management functions in no way lessens the need for effective coordination of monetary and fiscal policy if overall economic performance is to be optimized and maintained in the long term. This paper analyzes these issues based on a review of the relevant literature and of country experiences from an institutional and operational perspective.

Series:

Working Paper No. 1998/025

Subject:

Banking Central bank credit Central banks Fiscal policy Government debt management Monetary base Money Public debt Public financial management (PFM)

English

Publication Date:

March 1, 1998

ISBN/ISSN:

9781451844238/1018-5941

Stock No:

WPIEA0251998

Pages:

32

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