Year: 2015
Type: article
Abstract: In this article we use a structural vector autoregression (VAR) model to analyse the possibilities of monetary and fiscal policy in achieving main economic policy goals, namely price stability and economic growth, in Croatia from 2004 to 2012. Our main results indicate that expansionary monetary and fiscal policies both have positive effects on economic activity. On the other hand, fiscal expansion leads to nominal exchange rate appreciation while monetary expansion has depreciation effects on nominal exchange rate. Thus the main conclusion of the article is that coordinated measures of monetary and fiscal policies could achieve both goals, i.e. that fiscal and monetary authorities can stimulate economic growth without endangering price stability.
Institutions: University of Zagreb, Ekonomski fakultet - Zagreb
Language: English
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $944
Funder: Hrvatska Zaklada za Znanost
OpenAlex ID: W1594096971