Inflation targeting monetary and fiscal policies in a two-country stock-flow-consistent model
基于Godley和Lavoie的存量流量一致模型，构建两国模型引入通胀压力与经济周期，模拟三种冲击后发现单独使用货币或财政政策效果有限，而两者结合能有效稳定经济，且各国独立追求通胀目标会加剧汇率波动。
This paper develops a simple two-country stock–flow-consistent model based on that of Godley and Lavoie. In order to motivate the use of stabilisation policies, persistent inflationary pressure and endogenous economic cycles are introduced into the model. Three scenarios are then simulated: a step decrease in real exports from country B, increased wage pressure in country B and an income tax cut in country A. In all cases, monetary and fiscal policies in isolation enjoy little success, but a combined monetary and fiscal approach to stabilisation proves highly effective. Moreover, the model suggests that the pursuit of autonomous inflation targeting in each country introduces excessive exchange rate volatility relative to an alternative rule in which one central bank takes a leading role in interest rate setting.