Monetary Versus Fiscal Policy Effects: A Review of the Debate

Bennett T. McCallum

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

Abstract

The author reviews developments bearing on the “monetary versus fiscal policy” debate over the past 20 years. He quickly reviews the well-known items and arguments and focuses his attention on items that (i) have been neglected, (ii) are fairly recent, or (iii) are somewhat original.

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References

1974Are Government Bonds Net Wealth?1985Debt, Deficits, and Finite Horizons 1982Policy Analysis with Econometric Models 1976A Classical Macroeconometric Model for the United States 1991Money, Interest and Prices 1977The Monetarist Controversy or, Should We Forsake Stabilization Policies?1972Money, Debt, and Economic Activity 1968A Simple Macroeconomic Model with a Government Budget Restraint

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