Abstract

FRAGA, Carlos; BRISENO, Israel  and  HERAS, Miguel. Multipliers and fiscal and monetary coordination for development in Argentina, Brazil, Chile, and Mexico. Prob. Des [online]. 2016, vol.47, n.185, pp.9-32. ISSN 0301-7036.

The objective of this paper is to examine the relationship between fiscal and monetary policy coordination and fiscal multipliers in Argentina, Brazil, Chile, and Mexico. To do so, we first look at the theoretical framework of the New Consensus Macroeconomics (NCM), and then analyze the trends in the four countries for variables including consumption, investment, government spending, and interest rates. Finally, we present an estimate of the spending and monetary multipliers with proxy variables. The contribution of this paper consists of one, showing the inexistence of the crowding out effect, and two, quantifying the multipliers for the aforementioned countries.

Keywords : Fiscal and monetary policy; fiscal multipliers; consumption; investment; interest rates.