arbiter
JournalsPricingAccount

Fiscal and Monetary Policy Interactions in a DSGE Model for the Romanian Economy

Alina Bobașu & Bogdan Murarașu

Romanian Journal of Economic Forecasting2021article
ABDC C
Weight
0.40

What the paper says

n this paper, we analyze the fiscal and monetary policy interactions using a DSGE model for an open economy. The model is estimated for the Romanian economy using Bayesian techniques and several important simulations are provided to offer valuable answers to the issues : what are the effects of fiscal policy and whether the build-up of government debt matters for the medium-term sustainability of the economy. We find that the accommodative monetary policy plays a significant role in the effects the fiscal policy exerts on the real economic activity. Moreover, the initial public debt ratio matters in model-based simulations and an above 60 per cent public debt makes the economy more vulnerable when cushioning the adverse shocks.

1 citation

Cite this paper

@article{alina2021,
  title        = {{Fiscal and Monetary Policy Interactions in a DSGE Model for the Romanian Economy}},
  author       = {Alina Bobașu & Bogdan Murarașu},
  journal      = {Romanian Journal of Economic Forecasting},
  year         = {2021},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Fiscal and Monetary Policy Interactions in a DSGE Model for the Romanian Economy

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.40

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.15 × 0.4 = 0.06
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.