Jump to ContentJump to Main Navigation
Show Summary Details

Review of Economic Perspectives

Národohospodárský obzor; The Journal of Masaryk University

4 Issues per year

SCImago Journal Rank (SJR) 2015: 0.143
Source Normalized Impact per Paper (SNIP) 2015: 0.273
Impact per Publication (IPP) 2015: 0.121

Open Access
See all formats and pricing
Volume 14, Issue 3 (Sep 2014)


Integration of Monetary and Fiscal Policy of the Countries of the Visegrad Group

Stanislav Kappel
  • Technical University of Ostrava, Department of National Economy, Faculty of Economy, Sokolská třída 33, 701 00 Ostrava, Czech Republic
  • Email:
/ Jan Janků
  • Technical University of Ostrava, Department of National Economy, Faculty of Economy, Sokolská třída 33, 701 00 Ostrava, Czech Republic
  • Email:
Published Online: 2014-10-17 | DOI: https://doi.org/10.2478/revecp-2014-0010


The aim of this paper is to evaluate mutual interaction of monetary and fiscal policies in the countries of the Visegrad group, i.e. in the Czech Republic, Slovakia, Poland and Hungary. The relationship of monetary and fiscal policy - their coordination, cooperation or mutual antagonism - are basic determinants of successful implementation for economic policy of the state. Fiscal and monetary policies usually have different aims, and some conflict situations may arise in practical economic and political decision- making. Each policy has to make its decision with regard to the other one. Methodical approaches of this contribution are based on the game theory, which deals with the analysis of a wide range of decision situations with more participants (players) and it is primarily focused on the conflict situations. This game-theoretical approach is responsible for creating the theoretical model which is then dealt with in the empirical analysis. We find a distinctly stabilizing role of monetary policy and relatively problematic stabilizing role of fiscal policy in the analyzed countries. The dominant role of monetary policy is statistically confirmed in the case of the Czech Republic and Hungary.

Keywords : Fiscal Policy; Interactions; Monetary Policy; Policy Coordination; Policy Objectives


  • BALBONI, F., BUTI, M., LARCH, M. (2007). ECB vs. Council vs. Commission: Monetary and Fiscal Policy Interactions in the EMU When Cyclical Conditions are Uncertain. European Economy Economic Papers No. 277. 34 pp. ISBN 978-92-79-04630-8.

  • BEETSMA, R. M. W. J., BOVENBERG, L. A. (1998). Monetary Union without Fiscal Policy Coordination May Discipline Policymakers. Journal of International Economics, 1998. 45 (2). Pp. 239-58. DOI:10.1016/S0022-1996(98)00031-2. [Crossref]

  • BUTI, M., ROEGER, W., VELD In´t J. (2001). Monetary and Fiscal Policy Interactions under a Stability Pact. EUI Working paper. 2001(8). European University Institute.

  • CLARIDA, R., GALÍ, J., GERTLER, M. (1998). Monetary Policy Rules in Practice: Some International Evidence. European Economic Review. 42 (6), pp. 1033-1067. [Crossref]

  • DEMERTZIS, M., HUGHES HALLET, A., VIEGI, N. (2004). An independent central bank faced with elected governments. European Journal of Political Economy. 20 (4), pp. 907-922. DOI:10.1016/j.ejpoleco.2003.12.004. [Crossref]

  • DIXIT, A., LAMBERTINI, L. (2003). Interactions of Commitment and Discretion in Monetary and Fiscal Policies. The American Economic Review. 93 (5), pp. 1522-1542. DOI: 10.1257/000282803322655428. [Web of Science] [Crossref]

  • EUROPEAN CENTRAL BANK. (2013). Statistical Data Warehouse. [online] [cit. 2013-06-23] Available from Internet: http://sdw.ecb.europa.eu/browseSelection.do?DATASET=0&DATASET=1&sfl2=4&REF_AREA=106&sfl4=4&GOVNT_ST_SUFFIX=G&node=9485585.

  • EUROSTAT. (2013). Statistics Database [online] [cit. 2013-06-28] Available from Internet: HTTP://EPP.EUROSTAT.EC.EUROPA.EU/PORTAL/PAGE/PORTAL/STATISTICS/SEARCH_DATABASE.

  • FRIEDMAN, M. (1948). A Monetary and Fiscal Framework for Economic Stability. The American Economic Review. 38 (3), pp. 245 - 264.

  • FRIEDMAN, M. (1968). The Role of Monetary Policy. The American Economic Review. 58 (1), pp. 1-17.

  • GUJARATI, N. G.; PORTER, D. C. (2009). Basics Econometrics. Boston: McGraw- Hill Education.

  • LEEPER, E. M. (2010). Monetary Science, Fiscal Alchemy. NBER Working papers, No. 16510.

  • MANDEL, M., TOMŠÍK, V. (2001). Mix monetární a fiskální politiky v České republice: Empirická verifikace modelu efektivní tržní klasifikace. Politická ekonomie. 49 (2), pp. 163-175.

  • MELITZ, J. (2000). Some Cross-Country Evidence about Fiscal Policy Behavior and Consequences for EMU. CREST-INSEE, and CEPR.


  • MUSCATELLI, A., TIRELLI, P., TRECROCI, C. (2002). Monetary and Fiscal Policy Interactions over the Cycle: Some Empirical Evidence. Business School - Economics, University of Glasgow Working Papers. 2002 (13).

  • NORDHAUS, W. D. (1994). Policy Games: Coordination and Independence in Mone Monetary and Fiscal Policies. Brookings Papers on Economic Activity. 25 (2), pp. 139-216. [Crossref]

  • ONORANTE, L. (2006). Interaction of Fiscal Policies on the Euro Area: How Much Pressure on the ECB? Economics Working Papers from European University Institute, No ECO2006 (9).

  • Organisation for Economic Co-operation and Development. (2013). OECD StatExtracts [online] [cit. 2013-06-20] Available from Internet: http://stats.oecd.org/Index.aspx?DataSetCode=MEI_PRICES#.

  • ŘEŽÁBEK, P. (2011). Měnová politika a její interakce s politikou fiskální. Praha: Karolinum. ISBN 978-80-246-1894-4.

  • SARGENT, T. J., WALLACE, N. (1981). Some Unpleasant Monetarist Arithmetic. Federal Reserve Bank of Minneapolis Quarterly Review. 5 (3), pp. 1-17.

  • TINBERGEN, J. (1954). Centralization and Decentralization in Economic Policy. Amsterdam: North Holland Pub. Co.

  • WYPLOSZ, Ch. (1999). Economic Policy Coordination in EMU: Strategies and Institutions. In: Financial Supervision and Policy Coordination in the EMU. ZEI Policy Paper, 1999 (B11).

About the article

Published Online: 2014-10-17

Published in Print: 2014-09-01

Citation Information: Review of Economic Perspectives, ISSN (Online) 1804-1663, DOI: https://doi.org/10.2478/revecp-2014-0010. Export Citation

© by Stanislav Kappel. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. (CC BY-NC-ND 3.0)

Comments (0)

Please log in or register to comment.
Log in