Li, Erica X. N.; Zha, Tao A.; Zhang, Ji; Zhou, Hao - 2022
We explore an important role of monetary-fiscal policy interactions in explaining three stylized facts: (1) a positive correlation of stock and bond returns in 1971-2001 and a negative one after 2001, (2) a negative correlation of consumption and inflation in 1971-2001 and a positive one after...