Economic Policy and Performance in Industrial Democracies: Party Governments, Central Banks, and the Fiscal-monetary Policy Mix (Routledge frontiers of political economy ; 101)

This book is the first systematic study of how the interdependence of fiscal and monetary policies and the interaction of party governments and central banks affect the fiscal-policy mix in eighteen industrial democracies in North America, Western Europe, Japan and Oceania. Sakamoto argues that central banks’ influence on economic policy is far more extensive than has been conventionally believed. He demonstrates that central banks systematically affect fiscal policy that is conducted by party governments, and that independent central banks restrain the latter’s fiscal policy. Sakamoto also demonstrates that the economic policy of industrial democracies did really change from the 1960s-1970s to the 1980s-1990s and became conservative as a result of the globalization of the economy and governments’ response to it. But he argues that despite the neo-liberal policy shift, globalization has not diminished the role of domestic politics in economic policy. Book Cover......Page 1 Title......Page 10 Copyright......Page 11 Dedication......Page 12 Contents......Page 14 Figures......Page 16 Tables......Page 17 Acknowledgments......Page 22 1 Introduction......Page 24 2 Party governments–central banks interaction: The fiscal–monetary policy mix......Page 35 3 Change in the economic environment, political actors, and adjustment......Page 76 4 The political–economic determinants of economic policy and outcomes: Basic empirical results......Page 111 5 Party governments, central banks, and labor: Empirical evidence for interactive effects......Page 199 6 Conclusion......Page 312 Notes......Page 330 References......Page 343 Index......Page 350 This Is A Systematic Study Of How The Interdependence Of Fiscal And Monetary Policies And The Interaction Of Party Governments And Central Banks Affect The Fiscal-policy Mix In 18 Industrial Democracies In America, Europe And Asia. Introduction -- Party Governmentscentral Banks Interaction: The Fiscalmonetary Policy Mix -- Change In The Economic Environment, Political Actors, And Adjustment -- The Political{u2014}economic Determinants Of Economic Policy And Outcomes: Basic Empirical Results -- Party Governments, Central Banks, And Labor: Empirical Evidence For Interactive Effects -- Conclusion Takayuki Sakamoto. Includes Bibliographical References And Index.