earticle

영어

One important goal of economy management is the pursuit of economic growth with price stabilization through monetary policy and fiscal policy. However, the interactive coordination of monetary and fiscal policies by central authorities remains controversial. This paper results were as follows. although no explicit causal relations were identified between the individual policy instrument variables and GDP, an implicit policy coordination of these instrument variables and GDP was found when using co-integration and VECM. This study is to introduce and demonstrate the concept of implicit coordination to describe the combined impact of policy instrument variables on GDP, especially in the absence of any explicit causal relations: The results indicate an implicit complementarity of fiscal and monetary policy, instead of the traditional substitutability. It is also important to note that the monetary policies responded slowly to GDP and the monetary variables – interest rate and money supply – switched roles as the time horizon spread over future periods.