Behavioural Assumptions in Decentralised Stabilisation Policies
- 49 Downloads
Macroeconomic policy in the United States is very much the product of a decentralised control process, as is best exemplifed by the separation of monetary and fiscal policy. In the past two or three decades monetary and fiscal policy have not always been coordinated or based on the same objectives. There have been periods in which the objectives differed, and also periods in which the objectives were the same but the world views on which policies are based differed. It has been argued that decentralisation has limited our ability to control the economy effectively.
KeywordsUnemployment Rate Monetary Policy Fiscal Policy Open Loop Monetary Authority
Unable to display preview. Download preview PDF.
- Fair, R.C. (1976), A Model of Macroeconomic Activeity, Volume II: The Empirical Model, Ballinger Publishing Company, Cambridge.Google Scholar
- Neese, J.W. (1979), ‘Optimal control studies of interactions between monetary and fiscal authorities in the U.S. economy’, Master’s theses, MIT, Department of Ocean Engineering.Google Scholar
- Owen, G. (1968), Game Theory, W.B. Saunders, Philadelphia.Google Scholar
- Pindyck, R.S. (1973), Optimal Planning for Economic Stabilisation, North-Holland, Amsterdam.Google Scholar
- Pindyck, R.S. (1976), ‘The cost of conflicting objectives in policy formulation’, Annals of Economic and Social Measurement, 5, pp. 239–248.Google Scholar
- Pindyck, R.S., and D.L. Rubinfeld (1981), Econometric Models and Economic Forecasts, 2nd edition, McGraw-Hill, New York.Google Scholar