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Entrepreneurship and Sustainability Issues Open access
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Received: 2022-04-13  |  Accepted: 2022-05-30  |  Published: 2022-06-30

Title

The impact of monetary and fiscal policy variables on the EU economic growth. Panel data analysis


Abstract

The financial crisis of 2008-2009 has changed an approach to conducting monetary and fiscal policy. Changing economic conditions forced the economic authorities to make decisions that influenced an interaction between the central bank and the government (policy mix) in the European Union countries. The article aims to identify the impact of variables in the area of monetary and fiscal policy on the economy in the EU countries in existing economic conditions. The article verifies the hypothesis that variables from the monetary and fiscal policy have a statistically significant impact on the GDP per capita growth rate in the EU countries. To achieve the goal and verify the hypothesis, the following research methods were used: presentation of statistical data as well as statistical and econometric research methods (panel model). The rationale for the adoption of this topic was to examine the impact of central bank policy and government in the EU countries on their economies. The contribution of this article is to present the role of monetary and fiscal policy in the economic growth of the EU countries in 2000-2019. The results of the study indicate that the GDP per capita growth rate in 28 European Union countries in the period of 2000-2019 was statistically significantly affected by such variables as: interest rate (from the monetary policy area), GG deficit/surplus (the variable from the area of fiscal policy). This is important information in the context of conducting monetary policy and fiscal policy by relevant decision-makers, i.e., monetary authorities and fiscal authorities in the EU countries.


Keywords

economy, European Union, fiscal policy, monetary policy, policy mix, sustainable policy


JEL classifications

E52 , E62 , O52


URI

http://jssidoi.org/jesi/article/977


DOI


Pages

380-395


Funding

This study was financed by funds from the National Science Centre for the period 2018-2021 for a research project entitled The coordination of the monetary and fiscal policies in the studies of the monetary - fiscal interactions based on the game theory - the case of the European Union countries, contract number: UMO-2017/26/D/HS4/00954.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Stawska, Joanna
University of Lodz, Lodz, Poland https://www.uni.lodz.pl
Articles by this author in: CrossRef |  Google Scholar

Miszczyńska, Katarzyna
University of Lodz, Lodz, Poland https://www.uni.lodz.pl
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

9


Number

4


Issue date

June 2022


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1708  |  PDF downloads: 711

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