IDEAS home Printed from https://ideas.repec.org/a/bla/metroe/v75y2024i4p641-669.html
   My bibliography  Save this article

Fiscal and macroprudential policy coordination for stabilization purposes

Author

Listed:
  • María Malmierca‐Ordoqui

Abstract

The COVID‐19 pandemic has highlighted the need of maintaining financial and economic stabilization to mitigate the negative effects of the health crisis. In the context of a currency area, national governments count on national fiscal and macroprudential instruments to stabilize their own economy. Through a DSGE model for a monetary union I assess the welfare implications of different macroprudential‐fiscal policy combinations, that are set with stabilization purposes. The findings confirm that for a supply and a demand shock, as the ones responsible for the economic crisis of 2020, the stabilizing policy mix might deteriorate welfare. By contrast, after a financial shock, similar to that of the Great Recession, the stabilizing policy combination strategies always achieve welfare gains.

Suggested Citation

  • María Malmierca‐Ordoqui, 2024. "Fiscal and macroprudential policy coordination for stabilization purposes," Metroeconomica, Wiley Blackwell, vol. 75(4), pages 641-669, November.
    • Handle: RePEc:bla:metroe:v:75:y:2024:i:4:p:641-669
    DOI: 10.1111/meca.12471
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/meca.12471
    Download Restriction: no
    File URL: https://libkey.io/10.1111/meca.12471?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:metroe:v:75:y:2024:i:4:p:641-669. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.