Effectiveness of Monetary and Fiscal Policies in the Direction of Output Growth of a Country under Pandemic Stress: A Simultaneous Equations Model under the Estimation of Two-Stage Least Squares (2SLS) and Ordinary Least Squares (OLS) Method


Authors : Dr. S. K. Ashiquer RAHMAN; Dr. Jean-Pierre DOUSSOULIN

Volume/Issue : Volume 8 - 2023, Issue 5 - May


Google Scholar : https://bit.ly/3TmGbDi

Scribd : https://tinyurl.com/yckkxp9n

DOI : https://doi.org/10.5281/zenodo.8055209


Abstract : The proper policy handling might not able to attain the target since some of recessions, e.g., pandemic-led crises, the variables shocks of the economics. At the level of this situation, the Central bank implements the monetary policy to choose increase the exogenous expenditure and level of money supply consecutively for booster level economic growth, whether the monetary policy is relatively more effective than fiscal policy in altering real output growth of a country or both stand for relatively effective in the direction of output growth of a country

Keywords : IS-LM Framework, Pandemic. Economics Variables Shocks, Simultaneous Equations model, output growth of a country.

The proper policy handling might not able to attain the target since some of recessions, e.g., pandemic-led crises, the variables shocks of the economics. At the level of this situation, the Central bank implements the monetary policy to choose increase the exogenous expenditure and level of money supply consecutively for booster level economic growth, whether the monetary policy is relatively more effective than fiscal policy in altering real output growth of a country or both stand for relatively effective in the direction of output growth of a country

Keywords : IS-LM Framework, Pandemic. Economics Variables Shocks, Simultaneous Equations model, output growth of a country.

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