Optimal macroprudential and fiscal policy in a monetary union
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Malmierca, M.: Optimal macroprudential and fiscal policy in a monetary union, Economic Modelling, Volume 122, 2023 https://doi.org/10.1016/j.econmod.2023.106238
The link between the financial system, economic activity, and fiscal sustainability is increasingly evident, making the joint study of fiscal and macroprudential measures a promising area to investigate. This paper provides a novel analysis of the coordination of optimal fiscal and macroprudential policies regarding welfare maximization through a two-country model for a monetary union. I find that the advisability to coordinate macroprudential and fiscal policy depends on the kind of shock that ...