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Original scientific paper

Modelling Fiscal and Monetary Policy Interactions in Croatia Using Structural Vector Error Correction Model

Dario Rukelj ; Ministry of Finance of the Republic of Croatia

Fulltext: english, pdf (2 MB) pages 27-59 downloads: 2.214* cite
APA 6th Edition
Rukelj, D. (2009). Modelling Fiscal and Monetary Policy Interactions in Croatia Using Structural Vector Error Correction Model. Privredna kretanja i ekonomska politika, 19 (121), 27-59. Retrieved from https://hrcak.srce.hr/48264
MLA 8th Edition
Rukelj, Dario. "Modelling Fiscal and Monetary Policy Interactions in Croatia Using Structural Vector Error Correction Model." Privredna kretanja i ekonomska politika, vol. 19, no. 121, 2009, pp. 27-59. https://hrcak.srce.hr/48264. Accessed 25 Oct. 2021.
Chicago 17th Edition
Rukelj, Dario. "Modelling Fiscal and Monetary Policy Interactions in Croatia Using Structural Vector Error Correction Model." Privredna kretanja i ekonomska politika 19, no. 121 (2009): 27-59. https://hrcak.srce.hr/48264
Harvard
Rukelj, D. (2009). 'Modelling Fiscal and Monetary Policy Interactions in Croatia Using Structural Vector Error Correction Model', Privredna kretanja i ekonomska politika, 19(121), pp. 27-59. Available at: https://hrcak.srce.hr/48264 (Accessed 25 October 2021)
Vancouver
Rukelj D. Modelling Fiscal and Monetary Policy Interactions in Croatia Using Structural Vector Error Correction Model. Privredna kretanja i ekonomska politika [Internet]. 2009 [cited 2021 October 25];19(121):27-59. Available from: https://hrcak.srce.hr/48264
IEEE
D. Rukelj, "Modelling Fiscal and Monetary Policy Interactions in Croatia Using Structural Vector Error Correction Model", Privredna kretanja i ekonomska politika, vol.19, no. 121, pp. 27-59, 2009. [Online]. Available: https://hrcak.srce.hr/48264. [Accessed: 25 October 2021]
Fulltext: croatian, pdf (58 KB) pages 27-59 downloads: 710* cite
APA 6th Edition
Rukelj, D. (2009). Modeliranje interakcija fiskalne i monetarne politike u Hrvatskoj korištenjem strukturnog vektorskog modela s ispravljanjem pogrešaka (VECM). Privredna kretanja i ekonomska politika, 19 (121), 27-59. Retrieved from https://hrcak.srce.hr/48264
MLA 8th Edition
Rukelj, Dario. "Modeliranje interakcija fiskalne i monetarne politike u Hrvatskoj korištenjem strukturnog vektorskog modela s ispravljanjem pogrešaka (VECM)." Privredna kretanja i ekonomska politika, vol. 19, no. 121, 2009, pp. 27-59. https://hrcak.srce.hr/48264. Accessed 25 Oct. 2021.
Chicago 17th Edition
Rukelj, Dario. "Modeliranje interakcija fiskalne i monetarne politike u Hrvatskoj korištenjem strukturnog vektorskog modela s ispravljanjem pogrešaka (VECM)." Privredna kretanja i ekonomska politika 19, no. 121 (2009): 27-59. https://hrcak.srce.hr/48264
Harvard
Rukelj, D. (2009). 'Modeliranje interakcija fiskalne i monetarne politike u Hrvatskoj korištenjem strukturnog vektorskog modela s ispravljanjem pogrešaka (VECM)', Privredna kretanja i ekonomska politika, 19(121), pp. 27-59. Available at: https://hrcak.srce.hr/48264 (Accessed 25 October 2021)
Vancouver
Rukelj D. Modeliranje interakcija fiskalne i monetarne politike u Hrvatskoj korištenjem strukturnog vektorskog modela s ispravljanjem pogrešaka (VECM). Privredna kretanja i ekonomska politika [Internet]. 2009 [cited 2021 October 25];19(121):27-59. Available from: https://hrcak.srce.hr/48264
IEEE
D. Rukelj, "Modeliranje interakcija fiskalne i monetarne politike u Hrvatskoj korištenjem strukturnog vektorskog modela s ispravljanjem pogrešaka (VECM)", Privredna kretanja i ekonomska politika, vol.19, no. 121, pp. 27-59, 2009. [Online]. Available: https://hrcak.srce.hr/48264. [Accessed: 25 October 2021]

Abstracts
This paper investigates the interactions of fiscal policy, monetary policy and economic activity in Croatia. It employs a structural VECM in the identification of permanent and transitory shocks using monthly data on government expenditures, money aggregate M1 and the index of economic activity. The cointegrating properties of the data provide two restrictions on the transitory nature of fiscal and monetary policy shocks. An additional identifying restriction is provided by the assumption on contemporaneous interactions of the two policies. Impulse response functions and variance decompositions are used to study the effects of identified structural shocks. The results imply that an aggregate supply shock has a statistically significant permanent effect on all three observed variables in the long-run; secondly, fiscal and monetary policy move in the opposite direction, which indicates that they have been used as substitutes; finally, an unambiguous conclusion on the impact of the two policies on economic activity in the short- and medium-run can not be reached.

Keywords
fiscal policy; monetary policy; cointegration; structural VEC model; permanent shocks; transitory shocks; impulse response functions; Croatia

Hrčak ID: 48264

URI
https://hrcak.srce.hr/48264

[croatian]

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