هماهنگی سیاست های کلان اقتصادی در مدل رشد ساده آک

Modern theories of government finance stress the importance of an economy’s fiscal deficits in determining the course of monetary policy. Modern growth theory stresses the role of monetary factors in economic growth. This paper explores how these two are interrelated, using a simple AK growth model, one with money, reserve requirements, and government debt. We provide a comprehensive look at the coordination of macroeconomic policy and its effects on long-run growth under three alternative coordinating arrangements. We uncover some unconventional results regarding the relationship between growth and a number of policy variables; these rest squarely on the constraint of the coordination process.

It is widely recognized that a nation’s fiscal deficits can play a critical role in determining the course of monetary policy. The government’s consolidated budget constraint links the policies of its two fiduciaries (the monetary and fiscal authorities), preventing them from pursuing policies that are strictly independent of one another. Sargent (1999) refers to the reconciling of this budget constraint as the coordination of monetary and fiscal policy; how this is achieved and what are some of the consequences of the coordination arrangement for long-run growth, inflation, and monetary policy is a central theme of this paper.

Fiscal policy often places constraints on the course of monetary policy. When such conditions prevail, the policies of the fiscal and the monetary branches of government must somehow be coordinated. This paper provides a comprehensive look at this process and its effects on long-run growth under three alternative coordinating arrangements. The first of these, an inflation-coordinating arrangement, provides insight into the interrelationship that arises between inflation and growth in an environment with a dominant fiscal authority. Our results contribute to the literature on monetarist arithmetic by identifying a potentially important channel by which coordination is achieved. Within this section of the paper, we look at how changes in each component of a country’s seignorage policy affect long-run inflation and growth rates. Both positive and negative non-linear relationships between inflation and growth can be inferred from cross-sectional diagrams generated from numerical examples of the model.