THE STATE OF THE FEDERAL BUDGET AND THE STATE OF THE ECONOMY: FURTHER EVIDENCE
作者:
MICHAEL D. BRADLEY,
SUSAN M. POTTER,
期刊:
Economic Inquiry
(WILEY Available online 1986)
卷期:
Volume 24,
issue 1
页码: 143-153
ISSN:0095-2583
年代: 1986
DOI:10.1111/j.1465-7295.1986.tb01802.x
出版商: Blackwell Publishing Ltd
数据来源: WILEY
摘要:
Simultaneous monetary and fiscal policy reaction functions are derived and estimated for the 1969:2–1984.3 period. The results suggest that the Reagan administration has abandoned fiscal policy as a stabilization tool. Furthermore, although the average money growth rate declined in the Reagan administration, variation in the rate of money growth indicates that monetary policy has been used to combat unemployment. Finally, monetary and fiscal policies were not coordinated during this period. Rather, monetary and fiscal policy appear to be set by a Nash equilibrium in a non‐cooperative game. In a Nash equilibrium, the policy chosen by each authority maximizes its payoff, given the policy choice of the other author
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