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Measuring the Effects of Monetary and Fiscal Policy Changes on the U.S. Economy (1982-2012)

Author

Listed:
  • Michael D. Evans

    (DeGroote School of Business, McMaster University, Canada)

  • Trevor Chamberlain

    (DeGroote School of Business, McMaster University, Canada)

Abstract

This paper investigates the relationship between economic policy goals and the monetary and fiscal policy tools used to achieve them. A background is provided regarding current economic policy including an explanation of how a monetary and fiscal policy is formed and modified. A multiple regression analysis is conducted to measure the relationship between economic policy goals and the tools used to achieve them; the evidence suggests that there is a strong relationship between the two. It is further determined that it¡¯s necessary for the government and Federal Reserve to pay close attention to the policy tool variables studied, when making informed decisions regarding economic policy.

Suggested Citation

  • Michael D. Evans & Trevor Chamberlain, 2014. "Measuring the Effects of Monetary and Fiscal Policy Changes on the U.S. Economy (1982-2012)," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 1-14, May.
    • Handle: RePEc:bap:journl:140201
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economic policy; Monetary & fiscal policy; Economic indicator;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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