TY - BOOK ID - 135091147 TI - Effective Fiscal-Monetary Interactions in Severe Recessions AU - Chen, Jiaqian. AU - Espinoza, Raphael. AU - Goncalves, Carlos. AU - Gudmundsson, Tryggvi. AU - Hengge, Martina. AU - Jakab, Zoltan. AU - Lindé, Jesper. PY - 2022 SN - 9798400219146 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Belgium KW - Macroeconomics KW - Economics: General KW - Public Finance KW - Inflation KW - Money and Monetary Policy KW - Banks and Banking KW - Foreign Exchange KW - Informal Economy KW - Underground Econom KW - Fiscal Policy KW - Debt KW - Debt Management KW - Sovereign Debt KW - Price Level KW - Deflation KW - Monetary Policy KW - Interest Rates: Determination, Term Structure, and Effects KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Public finance & taxation KW - Monetary economics KW - Banking KW - Fiscal policy KW - Public debt KW - Prices KW - Inflation targeting KW - Monetary policy KW - Fiscal stimulus KW - Currency crises KW - Informal sector KW - Economics KW - Debts, Public KW - Interest rates UR - https://www.unicat.be/uniCat?func=search&query=sysid:135091147 AB - The COVID-19 pandemic and the subsequent need for policy support have called the traditional separation between fiscal and monetary policies into question. Based on simulations of an open economy DSGE model calibrated to emerging and advance economies and case study evidence, the analysis shows when constraints are binding a more integrated approach of looking at policies can lead to a better policy mix and ultimately better macroeconomic outcomes under certain circumstances. Nonetheless, such an approach entails risks, necessitating a clear assessment of each country’s circumstances as well as safeguards to protect the credibility of the existing institutional framework. ER -