Posted
|
July 16, 2015 12:25:51 PM |
Date
|
2015-07 |
Author
|
Tamim Bayoumi |
Affiliation
|
Strategy, Policy, and Review Department, IMF |
Title
|
The Dog That Didn’t Bark : The Strange Case of Domestic Policy Cooperation in the “New Normal” |
Summary / Abstract
|
This paper examines domestic policy cooperation, a curiously neglected issue. Both international and domestic cooperation were live issues in the 1970s when the IS/LM model predicted very different external outcomes from monetary and fiscal policies. Interest in domestic policy cooperation has since fallen on hard intellectual times—with knock-ons to international cooperation—as macroeconomic policy roles became highly compartmentalized. I first discuss the intellectual and policy making undercurrents behind this neglect, and explain why they are less relevant after the global crisis. This is followed by a discussion of: macroeconomic policy cooperation in a world of more fiscal activism; coordination across financial agencies and with macroeconomic policies; and how structural policies fit into this. The paper concludes with a proposal for a “grand bargain” across principle players to create a “new domestic cooperation.” |
Keywords
|
Domestic Policy Cooperation, Ce ntral Bank Independence, Macroprudential Policy |
URL
|
http://www.imf.org/external/pubs/ft/wp/2015/wp15156.pdf
|
See
|
More articles ...
|
|