Published on October 23, 2018 – Updated on December 9, 2019

Focus on Research

Inflation Targeting and Fiscal Rules: Made for One Another?

The article contributes to the debate between the proponents of a discretionary approach to policy making and those supporting rules that guide policy choices.
The article shows that rules have cross effects: monetary (fiscal) rules influence fiscal deficit (inflation rate).
Monetary and fiscal rules have complementary effects.

Read the blog article on the Royal Economic Society website