Izvorni znanstveni članak

https://doi.org/10.1080/1331677X.2019.1579661

The effects of macroeconomic policies under fixed exchange rates: A Bayesian VAR analysis

Dragan Tevdovski ; Saints Cyril and Methodius University, Skopje, Macedonia
Goran Petrevski ; Saints Cyril and Methodius University, Skopje, Macedonia
Jane Bogoev ; The World Bank, Washington, DC, USA

Sažetak

We analyse the effects of fiscal and monetary policies in Croatia and Macedonia estimated by a Bayesian vector autoregression (VAR). The main results of the study are as follows. Fiscal tightening leads to economic expansion in Macedonia and a decline in economic activity in Croatia. In both countries fiscal tightening leads to a decline in inflation and money market rates. Monetary tightening leads to output contraction and a decline in inflation in both countries. We find an opposite reaction of the fiscal authorities to a monetary shock, i.e., monetary contraction is accompanied by fiscal tightening in Croatia and by loose fiscal policy in Macedonia.

Ključne riječi

Fiscal policy; monetary policy; Bayesian VAR;

Hrčak ID:

229533

URI

https://hrcak.srce.hr/229533

Datum izdavanja:

22.1.2019.

Posjeta: 1.289 *