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A St.-Louis equation to reassess the influence of macroeconomic-policy instruments

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  • Belliveau, Stefan

Abstract

An analysis of the impact from stabilizing instruments important to macroeconomic policy on output in the US is presented. A simple approach to identify the influence of macroeconomic-policy instruments, based on the St. Louis equation, is clearly presented and examined using annual US data from 1956-2007. The conclusion from this analysis is that both monetary and fiscal policy are viable options for policymakers seeking to stabilize output.

Suggested Citation

  • Belliveau, Stefan, 2011. "A St.-Louis equation to reassess the influence of macroeconomic-policy instruments," MPRA Paper 28771, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28771
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    File URL: https://mpra.ub.uni-muenchen.de/28839/1/MPRA_paper_28839.pdf
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    References listed on IDEAS

    as
    1. Jerry L. Jordan, 1986. "The Andersen-Jordan approach after nearly 20 years," Review, Federal Reserve Bank of St. Louis, issue Oct, pages 5-8.
    2. Leonall C. Andersen & Jerry L. Jordan, 1968. "Monetary and fiscal actions: a test of their relative importance in economic stabilization," Review, Federal Reserve Bank of St. Louis, vol. 50(Nov), pages 11-23.
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    Cited by:

    1. Abu Bakarr Tarawalie & Noah Kargbo, 2020. "Efficacy of Fiscal and Monetary Policy in Sierra Leone: An ARDL Bound Testing Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 217-224.
    2. Michael Adebayo Ajayi & Olufemi Adewale Aluko, 2017. "Evaluating the Relative Impact of Monetary and Fiscal Policy in Nigeria using the St. Louis Equation," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(1), pages 40-50, February.

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    More about this item

    Keywords

    Business cycles; monetary policy; fiscal policy;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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