{
  "title": "The Fiscal Effects of Monetary Policy",
  "publication": "IMF Working Papers, May 1, 1998",
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  "summary": "This paper develops a simple framework to examine the budgetary implications of monetary policy measures. It further outlines, using this framework, the various channels of influence that tight monetary policy may have on the budget deficit.",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- The paper develops a simple framework to examine the budgetary implications of monetary policy measures.\n- Using this framework, it outlines the various channels of influence that tight monetary policy may have on the budget deficit.\n- The cumulative effect might be quantitatively large although each effect might be small.\n- Most of the effects tend to increase the budget deficit as a result of tight monetary policy.\n- Tight monetary policy causes a short-run decrease in the government debt.\n- Conclusion: macroeconomic policy coordination should be considered."
    },
    {
      "heading": "Framework and channels of influence",
      "content": "- Presents a simple analytical framework to link monetary policy measures to budgetary outcomes.\n- Identifies multiple channels through which tight monetary policy can affect the budget deficit (channels are described qualitatively in the source summary)."
    },
    {
      "heading": "Quantitative implications and interpretation",
      "content": "- Emphasizes that while individual effects may be small, their cumulative impact on the budget deficit might be quantitatively large.\n- Notes a distinction between short-run and deficit/debt dynamics: tight monetary policy tends to increase the budget deficit but leads to a short-run decrease in government debt."
    },
    {
      "heading": "Policy recommendations and implications",
      "content": "- Recommends considering macroeconomic policy coordination given the opposing short-run and deficit effects of tight monetary policy.\n- Implies that fiscal authorities should account for monetary policy–induced changes in deficit trajectories when planning budget and debt management."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Author: Momi Dahan\n- Date: May 1, 1998\n- Series: Working Paper No. 1998/066\n- Issue: 066\n- Volume: 1998\n- Pages: 19\n- DOI: https://doi.org/10.5089/9781451962185.001\n- Stock No: WPIEA0661998\n- ISBN: 9781451962185\n- ISSN: 1018-5941\n- Subject: Budget planning and preparation, Government debt management, Monetary aggregates, Monetary tightening, Public debt\n- Keywords: nominal exchange rate, WP\n\nIMF Working Papers — \"The Fiscal Effects of Monetary Policy\" (Momi Dahan), May 1, 1998.\n\n---\n\n Content in this bundle\n\n- The Fiscal Effects of Monetary Policy - WP/98/66\n  - The Fiscal Effects of Monetary Policy - WP/98/66 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - The Fiscal Effects of Monetary Policy - WP/98/66 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-fiscal-effects-of-monetary-policy-2589"
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    "Authors: Momi Dahan",
    "Published: May 1, 1998",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451962185.001",
    "The paper develops a simple framework to examine the budgetary implications of monetary policy measures.",
    "Using this framework, it outlines the various channels of influence that tight monetary policy may have on the budget deficit.",
    "The cumulative effect might be quantitatively large although each effect might be small.",
    "Most of the effects tend to increase the budget deficit as a result of tight monetary policy.",
    "Tight monetary policy causes a short-run decrease in the government debt.",
    "Conclusion: macroeconomic policy coordination should be considered.",
    "Presents a simple analytical framework to link monetary policy measures to budgetary outcomes.",
    "Identifies multiple channels through which tight monetary policy can affect the budget deficit (channels are described qualitatively in the source summary).",
    "Emphasizes that while individual effects may be small, their cumulative impact on the budget deficit might be quantitatively large.",
    "Notes a distinction between short-run and deficit/debt dynamics: tight monetary policy tends to increase the budget deficit but leads to a short-run decrease in government debt.",
    "Recommends considering macroeconomic policy coordination given the opposing short-run and deficit effects of tight monetary policy.",
    "Implies that fiscal authorities should account for monetary policy–induced changes in deficit trajectories when planning budget and debt management.",
    "Author: Momi Dahan",
    "Date: May 1, 1998",
    "Series: Working Paper No. 1998/066",
    "Issue: 066",
    "Volume: 1998",
    "Pages: 19",
    "DOI: https://doi.org/10.5089/9781451962185.001",
    "Stock No: WPIEA0661998",
    "ISBN: 9781451962185",
    "ISSN: 1018-5941",
    "Subject: Budget planning and preparation, Government debt management, Monetary aggregates, Monetary tightening, Public debt",
    "Keywords: nominal exchange rate, WP",
    "**The Fiscal Effects of Monetary Policy - WP/98/66**"
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