КООРДИНАЦІЯ ФІСКАЛЬНОЇ ТА МОНЕТАРНОЇ ПОЛІТИКИ

Kostiantyn Shvabii; Mykola Pasichnyi; Anton Nepytaliuk

doi:10.32782/2308-1988/2026-59-80

Kostiantyn Shvabii State Tax University https://orcid.org/0000-0002-4837-391X
Mykola Pasichnyi State University of Trade and Economics https://orcid.org/0000-0001-7663-776X
Anton Nepytaliuk Vinnytsia Institute of Trade and Economics of State University of Trade and Economics https://orcid.org/0000-0002-7890-3889

DOI: https://doi.org/10.32782/2308-1988/2026-59-80

Keywords: fiscal policy, monetary policy, macroeconomic stability, economic sustainability, public debt, inflation, economic growth

Abstract

Both theoretical and methodological foundations of the interaction between fiscal and monetary policy instruments aimed to ensure macroeconomic sustainability and to create the preconditions for economic growth are systematized. The relevance of coordinated financial regulation in order to achieve price stability, to maintain prudent public debt policy, and to stimulate economic activity is substantiated, regarding economic uncertainty and structural transformations. The approaches to the fiscal and monetary policies’ coordination are analyzed. An attention is paid to the transmission mechanisms through which fiscal expansion and monetary regulation influence inflation, aggregate demand, and the economic agents’ expectations. The implementation features of fiscal and monetary policies under conditions of exogenous crises are examined. Empirical aspects of the interaction between inflation, interest rates, and public debt dynamics are explored. The challenges faced by the policymakers in balancing anti-inflationary objectives with the need to support economic recovery and to ensure fiscal sustainability are highlighted. The role of institutional factors (e.g., independence of the central bank, application of fiscal rules, etc.) in shaping financial policy’s outcomes is emphasized. Coordination models of fiscal and monetary regulation measures are revealed. The scenarios of fiscal dominance, monetary dominance, and balanced or passive policy regimes are investigated. Their advantages, limitations, and institutional constraints are identified, taking the peculiarities of respective national economies and external shocks into account. The need to improve information exchange, transparency, and consensus-based macroeconomic forecasting is emphasized. The expediency of strengthening coordination amid fiscal and monetary authorities is substantiated as a key prerequisite for ensuring price stability, reducing macroeconomic volatility, enhancing the financial system’s resilience, and achieving sustainable economic development in the short- and the long-run.

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FISCAL AND MONETARY POLICIES’ COORDINATION

Abstract

References