The Relative Impact of Monetary and Fiscal Actions on Economic Activity: A Cross-Country Comparison

Dallas S. Batten · Rik W. Hafer

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Monetary Policy and Economic Impact Fiscal Policies and Political Economy Fiscal Policy and Economic Growth

Abstract

Dallas S. Batten and B. W. Hafer use a modified form of the “St. Louis equation” to assess the relative importance of monetary and fiscal actions on economic activity in several developed countries. The purpose of this cross-country comparison is to determine whether the well-known results for the United States are unique to the United States, or whether they apply to other economies as well.

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