Acta academica karviniensia 2014, 14(3):57-66 | DOI: 10.25142/aak.2014.048

INTERACTION OF FISCAL AND MONETARY POLICY IN THE CZECH REPUBLIC AND SLOVAKIA

Jan Janků1, Stanislav Kappel2
1 Vysoká škola báňská - Technická univerzita Ostrava, Ekonomická fakulta, Sokolská 33, 701 21 Ostrava, Email:jan.janku@vsb.cz
2 Vysoká škola báňská - Technická univerzita Ostrava, Ekonomická fakulta, Sokolská 33, 701 21 Ostrava, Email:stanislav.kappel@vsb.cz

The aim of this paper is to evaluate mutual interaction of fiscal and monetary policy in the Czech Republic and in Slovakia. The relationship - cooperation or conflict, are basic determinants of successful implementation for economic policy of the state. Fiscal and monetary policies have usually different aims and some conflict situations may arise. The game-theoretical approach is responsible for creating the theoretical model, which is then dealt with the empirical analysis by the method of the ordinary least squares. We find a stabilizing role of monetary policy in both countries and the dominant role of monetary policy in the Czech Republic.

Keywords: Fiscal Policy, Interactions, Monetary Policy, Policy Coordination, Policy Objectives
JEL classification: E52, E58, E61, E62, E63

Received: December 3, 2013; Accepted: September 23, 2014; Published: September 30, 2014  Show citation

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Janků J, Kappel S. INTERACTION OF FISCAL AND MONETARY POLICY IN THE CZECH REPUBLIC AND SLOVAKIA. Acta academica karviniensia. 2014;14(3):57-66. doi: 10.25142/aak.2014.048.
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