The impact of monetary and fiscal policy variables on the EU economic growth. Panel data analysis

The financial crisis of 2008-2009 has changed an approach to conducting monetary and fiscal policy. Changing economic conditions forced the economic authorities to make decisions that influenced an interaction between the central bank and the government (policy mix) in the European Union countries. The article aims to identify the impact of variables in the area of monetary and fiscal policy on the economy in the EU countries in existing economic conditions. The article verifies the hypothesis that variables from the monetary and fiscal policy have a statistically significant impact on the GDP per capita growth rate in the EU countries. To achieve the goal and verify the hypothesis, the following research methods were used: presentation of statistical data as well as statistical and econometric research methods (panel model). The rationale for the adoption of this topic was to examine the impact of central bank policy and government in the EU countries on their economies. The contribution of this article is to present the role of monetary and fiscal policy in the economic growth of the EU countries in 2000-2019. The results of the study indicate that the GDP per capita growth rate in 28 European Union countries in the period of 2000-2019 was statistically significantly affected by such variables as: interest rate (from the monetary policy area), GG deficit/surplus (the variable from the area of fiscal policy). This is important information in the context of conducting monetary policy and fiscal policy by relevant decision-makers, i.e., monetary authorities and fiscal authorities in the EU countries.