Monetary and fiscal policy in Portugal before and after the Euro adoption: an SVAR analysis

• Autor(a) principal: Moura, Afonso Pereira da Silva Souto
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/66788
• topic: Monetary policy; Fiscal policy; Euro area; Time-varying coefficients; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This study tried to discriminate the different impacts that fiscal and monetary decisions had on the Portuguese economy for the past two decades. Using different identification techniques and a VAR with time-varying coefficients, our main conclusions are: 1) fiscal multipliers became stronger with the adherence to the monetary union; 2) the ECB is, in general, committed to a Taylor rule type of monetary decisions that fits well the Portuguese data; 3) interest rates responded more strongly to inflation movements before the financial crisis, more strongly to unemployment movements during 2009 and less strongly to both in more recent times.