Press release - Rethinking Monetary–Fiscal Policy Coordination
Monetary policy has become increasingly accommodative in response to the global financial crisis, relying on unconventional policies, such as large-scale government bond purchases and negative interest rates in some countries. Yet there is broad agreement that there are limits to the scope of monetary policy actions and their effectiveness. Sustainable growth and price stability will require a coherent, integrated policy strategy that also includes contributions from fiscal and structural policies – as well as appropriate policies to contain financial risks.
This book contains the proceedings of the high-level seminar on “Rethinking Monetary‒Fiscal Policy Coordination” organised by the Bank of Slovenia and the International Monetary Fund on 19-20 May 2016 in Portorož, Slovenia. The seminar explored the thinking of policymakers and academics on the roles and coordination of monetary and fiscal policies in the European Union and elsewhere. Three main topics were taken up in separate sessions: (i) principles and practical experience in the coordination of monetary and fiscal policies; (ii) fiscal policy implementation in the EU institutional framework and implications for monetary policy; and (iii) conducting monetary policy when fiscal space is limited.