Moreover, the Fed has used its discretion to allocate credit and engage in fiscal policy.
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This would both reduce the lags in fiscal policy and insulate it from political pressure.
Nor is monetary policy improved by engaging in fiscal policy and the allocation of credit.
Yet the need for greater co-ordination in fiscal policy is the main theme of the new governments' thinking.
In the first instance, greater mobility of capital gives governments more freedom of manoeuvre in fiscal policy, not less.
So too should the relaxation in fiscal policy which started with President Bush's tax rebates this summer and which seem set to continue with a substantial stimulus package now working its way through Congress.
Rather than engaging in pure monetary policy to ensure long-run price stability and prevent erratic changes in nominal GDP, the U.S. central bank has engaged in fiscal policy by allocating credit to favored groups and thus politicized monetary policy.
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And I think the government should help us -- should help us in fiscal policy, should help us in tax policy, because a reinvention like you talk of the infrastructure of building bridges -- but we got to build up banks, we've got to build our technology.
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Finally, ACCA and IMA have asked their members to weigh in on fiscal policy in the U.S. with 49 percent of respondents expecting government spending to stabilize.
The degree of the decline will depend on the actions the government takes in its fiscal policy and the investment climate in general.
Asking the Fed to engage in stealth fiscal policy will not increase the confidence of creditors.
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Mr Mussa argues that the Fund failed to press Argentina to address the shortcomings in its fiscal policy.
Since I endorsed Hollande in hopes that he would engage in suicidal fiscal policy, this post is focused on the French fiscal plan.
But holding on to national sovereignty in both fiscal policy and the control of the banking sector may indeed be incompatible with the survival of the Euro.
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The second is the way in which fiscal policy is tightened: spending cuts are more likely to increase economic performance than tax increases, perhaps because higher revenues tend to be absorbed by profligate governments.
So May 6th's quarter-point increase in interest rates is unlikely to be the last although the next rise may not come until after the budget, in case fiscal policy is tightened by enough to make higher interest rates unnecessary.
Bernanke had to throw the ball back to the government in terms of fiscal policy, but nobody in Washington wants to catch this hot potato.
Last month, Mr Persson unveiled a plan to run budget surpluses in good times so that he could loosen fiscal policy in bad times without breaching the pact's 3% limit.
The great value of the annual Green Budget from the Institute for Fiscal Studies (IFS) is that it spells out in black and white the fiscal choices implicit in government policy, some of which will come as a surprise - even, perhaps, to ministers themselves.
He said he was happy to engage in debate over US fiscal policy, but only after an increase in the debt limit.
Similar schemes, such as the Federal Credit Programme in America, are tools of fiscal policy aimed at realising public-policy goals in an efficient and effective manner by using loans.
So, in practice, fiscal policy is unlikely to be able to provide meaningful stimulus over the term of the next government.
The dumping of the IMF programme in 2009 left fiscal policy adrift.
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For now, then, LTRO is on hold in hopes that fiscal policy makers at the legislative level can lead rather than the Central Bankers.
In addition, fiscal policy at both the federal and the state and local levels should impart a small stimulus to economic activity this year.
Japan, the world's second biggest economy, has been sidelined because of its persistent failure to push through the fundamental reforms needed to overcome its problems reforms in the banking sector, and in fiscal and monetary policy.
Constrained as the chancellor is by his excellent self-imposed disciplines in fiscal and monetary policy, if he is to affirm the power of the state to do good in the land and he is a socialist, remember it must be by means of ingenious wheezes and stratagems.
Once countries can no longer use monetary policy to moderate national highs and lows in economic activity, fiscal policy will need to assume a greater, nationally differentiated, counter-cyclical role.
The alternative is that it will become clear that the recovery is stalling in the face of the tightening of fiscal policy, particularly in Europe.
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