THE INTERACTION OF MONEY AND FİSCAL POLITICALS: THE NEW CONCENSUS

Abstract

Developments in macroeconomic policy since the 1990s have turned fiscal policy off, both theoretically and practically, while monetary policy is at the forefront. The monetary policy adopts inflation targeting by focusing on the adjustment of the interest rate as the main policy instrument, and the use of the monetary policy is the subject of inflation targeting. At this point, the question of why monetary policy has become so effective becomes important, and the role of fiscal policy needs to be investigated by repositioning the fiscal policy. Post Keynesian economists refer to fiscal policy as an important instrument to be used in macroeconomic policy in the context of the New Consensus and criticize the choice of short-term real interest rates as the sole policy instrument. In this study, the theoretical position and the importance of fiscal policy in the framework of the New Consensus is discussed, taking into account the fact that macroeconomic policy can provide successful results in addition to monetary policy as well as fiscal policy

Keywords

• Monetary Policy
• Fiscal Policy
• New Concencus

PARA VE MALİYE POLİTİKALARININ ETKİLEŞİMİ MESELESİ: YENİ UZLAŞI

Öz

Makroekonomi politikasında 1990’lı yıllardan itibaren yaşanan gelişmeler, hem teorik açıdan hem de uygulama açısından para politikasını ön plana çıkarırken maliye politikasını devre dışı bırakmaktadır. Para politikası ana politika aracı olarak faiz oranının ayarlanmasına odaklanarak enflasyon hedeflenmesini benimsemektedir. Bu noktada para politikasının neden bu denli etkin hale geldiği sorusu önemli hale gelmekte ve maliye politikasına yeniden yer verilerek maliye politikasının rolünün araştırılması gerekmektedir. Post Keynesyen İktisatçılar Yeni Uzlaşı çerçevesinde maliye politikasından, makroekonomi politikasında kullanılacak önemli bir araç olarak bahsetmekte ve tek politika aracı olarak kısa dönemli reel faiz oranlarının seçilmesini eleştirmektedirler. Bu çalışmada makroekonomik politikanın başarılı sonuçlar verebilmesinin para politikasının yanı sıra maliye politikasına da yer vermekten geçtiği düşüncesinden hareketle Yeni Uzlaşı çerçevesinde maliye politikasının teorik olarak yeri ve önemi ele alınmaktadır.

Anahtar Kelimeler

• Para Politikası
• Maliye Politikası
• Yeni Uzlaşı

Kaynakça

1. Agénor, P. (2002). Monetary policy under flexible exchange rates: an introduction to inflation targeting. in N. Loayza&N. Soto (eds.), Inflation Targeting: Design, Performance, Challenges, Central Bank of Chile: Santiego, Chile.
2. Alesina, Alberto, Carlo Favero & Francesco Giavazzi. (2012). The Output Effect of Fiscal Consolodation. CPER Working Paper, No: 450.
3. Alonso Gonzalez, L. A., & Palacio-Vera, A. (2002). Monetary policy, Taylor's rule and instability. 53(1), 1-24.
4. Allsopp C. & Vines D. (2005). The Macroeconomic Role of Fiscal Policy. Oxford Review of Economic Policy, 21(4), 485-508.
5. Arestis Philip & Biefang-Frisancho Mariscal, I. (2000). Capital Stock, Unemployment and Wages in the UK and Germany. Scottish Journal of Political Economy, 47(5), 487-503.
6. Arestis, P., & Sawyer, M. (2002). The Nature and Role of Monetary Policy When Money ıs Endogenous. The Levy Economics Institute of Bard College, Working Paper No. 374.
7. Arestis, P., & Sawyer, M. (2003). Reinventing fiscal policy. Journal of Post Keynesian Economics, 26(1), 3-25.
8. Arestis, P., & Sawyer, M. (2004a). Fiscal Policy: A Potent Instrument. New School Economic Review, 1(1), 15- 21.

9. Arestis, P., & Sawyer, M. (2004b). On the Effectiveness of Monetary Policy and of Fiscal Policy. Review of Social Economy, 62: 4, 441-463.
10. Arestis, P. (2007). What is the New Consensus in Macroeconomics. P. Arestis (Ed.), Is There a New Consensus in Macroeconomics? (USA: Palgrave Macmillan).
11. Arestis, P. (2008). The Effectiveness of Fiscal Policy in the Stock/Flow Levy Model. The Levy Economics Institute of Bard Collage.
12. Arestis, P. (2011). Fiscal Policy is Still an Effective Instrument of Macroeconomic Policy. Panoeconomicus, 12 April, 143-156.
13. Ascari, G. & Neikl R. (2008). Taylor Rules Cause Fiscal Policy Ineffectiveness. Society for Economic Dynamics, No.632.
14. Bas van A. & Harry G. (2003). Keynesian, Non-Keynesian or No effects of Fiscal Policy Changes? The EMU Case. Journal of Macroeconomics, 25(2), 213-240.
15. Bernanke, B. (2002). Deflation: Making Sure ‘It’ Doesn't Happen Here. Remarks before the National Economists Club, Washington, D.C. November 21.
16. Blanchard, O. J. (1985). Debt, Deficits and Finite Horizons. Journal of Political Economy, 93, 223-247.
17. Blanchard O. (2000). What Do We Know about Macroeconomics that Fisher and Wicksell Did Not?. Quarterly Journal of Economics, 115(4), 1375-1409.
18. Blanchard, O., & Perotti, R. (2002). An empirical characterization of the dynamic effects of changes in government spending and taxes on output. the Quarterly Journal of economics, 117(4), 1329-1368.
19. Blanchard, O. (2004). The economic future of Europe. The Journal of Economic Perspectives, 18(4), 3-26.
20. Blanchard, O.J. (2009). The State of Macro. Annual Review of Economics, 1(1): 209–228. doi:10.1146/annurev.economics.050708.142952.
21. Blinder, A. (2004). The Case against the Case against Discretionary Fiscal Policy. CEPS Working Paper, No. 100, June.
22. Botman, D. & Kumar M.S. (2006). Fundamental Determinants of the Effects of Fiscal Policy. IMF Working Paper.
23. Buncic, D. & Martin M. (2008). An Estimated New Keynesian Policy Model for Australia. The Economic Record, 84 (264), 1-16.
24. Campbell L. & Wren-Lewis S. (2005). Fiscal Stabilization Policy and Fiscal Institutions. Oxford Review of Economic Policy, 21(4), 584-597.
25. Cho, S. & Moreno A. (2005). A Small-Sample Study of the New-Keynesian Macro Model. Facultad de Ciencias Economias y Empreseriales, Universidad de Navarra, February, Working Paper No:03/05.
26. Clarida, R., Gali, J. & Gertler M. (1999). The Science of Monetary Policy: A New Keynesian Perspective. Journal of Economic Literature, 37(4), 1661-1707.
27. De Vries, M. M. G. (1987). Balance of payments adjustment, 1945 to 1986: The IMF experience. International Monetary Fund.
28. Fazzari, S. (1994). Why Doubt the Effectiveness of Keynesian Fiscal Policy?. Journal of Post Keynesian Economics,Winter, 213-248.
29. Forni, L., Monteforte, L., & Sessa, L. (2009). The general equilibrium effects of fiscal policy: Estimates for the euro area. Journal of Public Economics, 93(3), 559-585.
30. Friedman, M. (1959). A Programme for Monetary Stability: The Milar Lectures. New York: Fordham University Press.
31. Giordani, P. (2004). Evaluating New-Keynesian Models of a Small Open Economy. Oxford Bulletin of Economics and Statistics, 713-733.
32. Goodfriend M. & King R. G. (1997). The New Neoclassical Synthesis and the Role of Monetary Policy, FED of Richmond Working Paper, No.98-5.
33. Goodfriend, M. (2002). Monetary Policy in the New Neoclassical Synthesis: A Primer. International Finance, 5(2), 165–191. doi: 10.1111/1468-2362.00093/pdf.
34. Halaç, U. (2007). Türkiye‟de Para ve Maliye Politikalarının Koordinasyonu. İşletme ve Finans Dergisi, 22(254), 31-46.
35. Hemming, R., Kell M. & Mahfouz, S. (2002). The Effectiveness of Fiscal Policy in Stimulating Economic Activity A Review of the Literature. IMF Working Paper ,02/208.
36. Hjelm, G., & Johansson, M. W. (2002). Structural change in fiscal policy and the permanence of fiscal contractions-the case of Denmark and Ireland. Lund University, Department of Economics. Accessed October, 6, 2010.
37. Krugman, P. (2005). Is Fiscal Policy Poised for a Comeback?. Oxford Review of Economic Policy, 21(4), 515- 523.
38. Leith, C. and Wren-Lewis S. (2005). Compatibility Between Monetary and Fiscal Policy Under EMU. European Economic Review, 50(6), 1529 -1556.
39. Leith, C., & Wren-Lewis, S. (2006). Fiscal sustainability in a New Keynesian model.
40. Linde, J. (2005). Estimating New-Keynesian Phillips Curves:A Full Information Maximum Likelihood Approach. Sveriges Riskbank Working Paper Series, No:129, Revised Version.
41. Linnemann, L. & Schabert, A. (2001). Fiscal Policy in the New Neoclassical Synthesis. Revised Version, November 16.
42. Lavoie, M. (2002). A post-Keynesian alternative to the New consensus on monetary policy. In ADEK Conference organized by the CEMF, November, 14-16.
43. Masson, P. R., & Turtelboom, B. (1997). Characteristics of the Euro, the Demand for Reserves, and Policy Coordination under EMU.
44. McCallum, B.T. (2001). Monetary Policy Analysis in Models without Money. Federal Reserve Bank of St. Louis Review, 4(83), 145-160.
45. Meyer, L.H. (2001). Does Money Matter?. Federal Reserve Bank of St. Louis Review, 5(83), 1-15.
46. Özdemir, M. (2008). Yeni Neo-Klasik Sentez: Makro İktisatta Yeni Bir Uzlaşmaya Doğru. Ekonomik Yaklaşım, 19(66), 91-117.
47. Özdemir, M. (2010). Uzlaşmadan Ayrılığa: Küresel Finansal Kriz Makro İktisadın Krizi (mi)?. Finans Politik & Ekonomik Yorumlar, 47(545).
48. Setterfield, M. (2005). Central Bank Behaviour and the Stability of Macroeconomic Equilibrium: A Critical Examination of New Consensus. In P. Arestis, M. Baddeley, and J. McCombie (eds.), The New Monetary Policy: Implications and Relevance. Cheltenham, UK: Edward Elgar, 23–49.
49. Setterfield, M. (2007). Is There a Stabilizing Role for Fiscal Policy in the New Consensus?. Review of Political Economy, 19(3), 405-418.
50. Sims, C. A. (2003). Probability models for monetary policy decisions. Manuscript. Strauss-Khan, D. (2011). http://www.imf.org/external/np/speeches/2011/040411.htm. Global Challenges, Global Solutions.
51. Tokucu, E. (2010). Kriz ve Para Politikaları: Para Politikalarının Başarısızlığı Üzerine. Ekonomik Yaklasim, 21(76), 31-54.
52. Yurtkur, A. K. (2012). Yeni Neoklasik Sentez Modeli: Türkiye Uygulaması. AİBÜ-İİBF Ekonomik ve Sosyal Araştırmalar Dergisi.
53. Weil, P. (1989). Overlapping Families of Infinitely-Lives Agents. Journal of Public Economics, 38, 183-198.
54. Woodford M. (1998). Public Debt and the Price Level. Princeton University Working Paper, July. http://www.columbia.edu/~mw2230/BOE.pdf.
55. Woodford M. (1999). Revolution and Evolution in Twentieth Century Macroeconomics. Paper prepared for the conference on Frontiers of the Mind in the Twentieth Century, Washington.
56. Woodford, M. (2001). Fiscal requirements for price stability (No. w8072). National Bureau of Economic Research.
57. Woodford, M. (2003). Interest and Prices: Foundations of a Theory of Monetary Policy. Princeton, NJ: Princeton University Press.
58. Wren-Lewis, S. (2000). The Limits to Discretionary Fiscal Stabilisation Policy. Oxford Review of Economic Policy, 16, 92-105.
59. Zouache, A. (2004). Towards a New Neoclassical Synthesis? An Analysis of the Methodological Convergence Between New Keynesian Economics and Real Business Cycle Theory. History of Economic Ideas, 12(1): 95–117.