Beyer, Robert; Duttagupta, Rupa; Fotiou, Alexandra; … - 2023
: first, synchronized fiscal and monetary policies offer gains even when monetary policy is unconstrained and, second, sharing …This paper employs two established macroeconomic models to show that fiscal policy in the euro area can help monetary … policy in reducing inflation. Specifically, a fiscal consolidation of 1 percent of GDP for two years and 0.5 percent in the …