Models for Achieving Macroeconomic Equilibrium – Fiscal and Monetary Policy Opportunities Cover Image

Модели за постигане на макроикономическо равновесие – възможности на фискалната и паричната политика
Models for Achieving Macroeconomic Equilibrium – Fiscal and Monetary Policy Opportunities

Author(s): Tsvetan Iliev
Subject(s): Economy, Business Economy / Management, Micro-Economics, Financial Markets, Public Finances, Socio-Economic Research
Published by: Международно висше бизнес училище
Keywords: macroeconomic equilibrium; fiscal policy; monetary policy; capital mobility; exchange rate

Summary/Abstract: The purpose of this study is to determine the conditions under which the economy is established in a state of equilibrium domestically and internationally. The object of research is the possibilities of the instruments of fiscal and monetary policy to establish the national economy in a state of internal and external equilibrium. The subject of research of the present development is a policy of changing costs and a policy of redirecting costs through the exchange rate, which are embedded in a number of models to achieve equilibrium. Attention is directed to the following models: diagram of Swann, of R. Mundel, of Mundel - Fleming, with consideration of the consequences for the foreign trade policy of the country in case of devaluation/revaluation of the currency in the conditions of a fixed exchange rate, of IS - LM - BP for analysis of economic policy, taking into account the possibilities of monetary and fiscal policy at a floating exchange rate and different degrees of international capital mobility, taking into account the effects of foreign trade on the economy at a floating exchange rate.

  • Issue Year: 2024
  • Issue No: 16
  • Page Range: 7-31
  • Page Count: 25
  • Language: Bulgarian
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