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

Dr. S. K. Ashiquer RAHMAN; Dr. Jean-Pierre DOUSSOULIN1

1

Publication Date: 2023/06/19

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.

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

PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT23MAY25591.pdf

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