«The Fiscal Channel of Monetary Policy». Finance Research Seminar. Universität Liechtenstein.

Zum Vortrag
«This paper empirically studies the importance of fiscal policy in shaping the monetary policy transmission mechanism. We document that a contractionary monetary policy shock, in addition to lowering output and prices, induces a pronounced adjustment in fiscal measures, leading to persistent primary deficits and debt accumulation. This debt build-up is primarily driven by automatic stabilizers, while higher interest payments play a secondary role. 

Utilizing structural counterfactuals to discipline the debt accumulation, we find that frontloading the fiscal consolidation considerably amplifies the monetary effects. Furthermore, these counterfactuals show that the timing of the consolidation alters the composition of the fiscal adjustment, with distinct implications for real and nominal outcomes. The  impact of a monetary policy shock on prices is more than halved by the endogenous djustment in social transfers, whereas the tax system significantly reduces the effect on output.»