Inflation and the role of macroeconomic policies: A model for the case of Denmark

Autores
Raza, Hamid; Laurentjoye, Thibault; Byrialsen, Mikael Randrup; Valdecantos, Sebastián
Año de publicación
2023
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
This paper provides an assessment of the different channels through which monetary, fiscal and income policies affect prices and output in a small open economy and discuss which policy measures are effective and feasible in the face of inflationary shocks. We build a stock-flow-consistent model using sectoral data for Denmark. We then replicate the inflationary environment faced by Denmark and several other countries after the Covid-19 crisis. While taking monetary tightening as a forced policy response for a small open economy with fixed exchange rate, we explore a number of policies that, within the current institutional and legal framework, can potentially mitigate the effects of inflation. Our conclusion is that a close coordination of fiscal and income policies can help reduce the effects of adverse shocks to income without increasing inflation. Furthermore, we find that of all the policies implemented, monetary policy has the most dramatic effects on public debt sustainability.
Fil: Raza, Hamid. Aalborg University Business School. MaMTEP; Denmark.
Fil: Laurentjoye, Thibault. Aalborg University Business School. MaMTEP; Denmark.
Fil: Byrialsen, Mikael Randrup. Aalborg University Business School. MaMTEP; Denmark.
Fil: Valdecantos, Sebastián. Aalborg University, MaMTEP. Aalborg University Business School; Denmark.
Fuente
Structural Change and Economic Dynamics, 67, 32-43. ISSN 0954-349X. 10.1016/j.strueco.2023.06.006
Materia
Macroeconomía
Política Económica
Inflación
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by/4.0/deed.es
Repositorio
Nülan (UNMDP-FCEyS)
Institución
Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
OAI Identificador
oai:nulan.mdp.edu.ar:4077

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network_name_str Nülan (UNMDP-FCEyS)
spelling Inflation and the role of macroeconomic policies: A model for the case of DenmarkRaza, HamidLaurentjoye, ThibaultByrialsen, Mikael RandrupValdecantos, SebastiánMacroeconomíaPolítica EconómicaInflaciónThis paper provides an assessment of the different channels through which monetary, fiscal and income policies affect prices and output in a small open economy and discuss which policy measures are effective and feasible in the face of inflationary shocks. We build a stock-flow-consistent model using sectoral data for Denmark. We then replicate the inflationary environment faced by Denmark and several other countries after the Covid-19 crisis. While taking monetary tightening as a forced policy response for a small open economy with fixed exchange rate, we explore a number of policies that, within the current institutional and legal framework, can potentially mitigate the effects of inflation. Our conclusion is that a close coordination of fiscal and income policies can help reduce the effects of adverse shocks to income without increasing inflation. Furthermore, we find that of all the policies implemented, monetary policy has the most dramatic effects on public debt sustainability.Fil: Raza, Hamid. Aalborg University Business School. MaMTEP; Denmark.Fil: Laurentjoye, Thibault. Aalborg University Business School. MaMTEP; Denmark.Fil: Byrialsen, Mikael Randrup. Aalborg University Business School. MaMTEP; Denmark.Fil: Valdecantos, Sebastián. Aalborg University, MaMTEP. Aalborg University Business School; Denmark.Elsevier B.V.2023-07-05info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfhttps://nulan.mdp.edu.ar/id/eprint/4077/https://nulan.mdp.edu.ar/id/eprint/4077/1/raza-etal-2023.pdf Structural Change and Economic Dynamics, 67, 32-43. ISSN 0954-349X. 10.1016/j.strueco.2023.06.006 <https://doi.org/10.1016/j.strueco.2023.06.006> reponame:Nülan (UNMDP-FCEyS)instname:Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Socialesenginfo:eu-repo/semantics/altIdentifier/doi/10.1016/j.strueco.2023.06.006info:eu-repo/semantics/dataset/url/https://nulan.mdp.edu.ar/id/eprint/4083/Dinamarcainfo:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by/4.0/deed.es2025-09-04T09:45:12Zoai:nulan.mdp.edu.ar:4077instacron:UNMDP-FCEySInstitucionalhttp://nulan.mdp.edu.ar/Universidad públicaNo correspondehttp://nulan.mdp.edu.ar/cgi/oai2cendocu@mdp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:18452025-09-04 09:45:12.541Nülan (UNMDP-FCEyS) - Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Socialesfalse
dc.title.none.fl_str_mv Inflation and the role of macroeconomic policies: A model for the case of Denmark
title Inflation and the role of macroeconomic policies: A model for the case of Denmark
spellingShingle Inflation and the role of macroeconomic policies: A model for the case of Denmark
Raza, Hamid
Macroeconomía
Política Económica
Inflación
title_short Inflation and the role of macroeconomic policies: A model for the case of Denmark
title_full Inflation and the role of macroeconomic policies: A model for the case of Denmark
title_fullStr Inflation and the role of macroeconomic policies: A model for the case of Denmark
title_full_unstemmed Inflation and the role of macroeconomic policies: A model for the case of Denmark
title_sort Inflation and the role of macroeconomic policies: A model for the case of Denmark
dc.creator.none.fl_str_mv Raza, Hamid
Laurentjoye, Thibault
Byrialsen, Mikael Randrup
Valdecantos, Sebastián
author Raza, Hamid
author_facet Raza, Hamid
Laurentjoye, Thibault
Byrialsen, Mikael Randrup
Valdecantos, Sebastián
author_role author
author2 Laurentjoye, Thibault
Byrialsen, Mikael Randrup
Valdecantos, Sebastián
author2_role author
author
author
dc.subject.none.fl_str_mv Macroeconomía
Política Económica
Inflación
topic Macroeconomía
Política Económica
Inflación
dc.description.none.fl_txt_mv This paper provides an assessment of the different channels through which monetary, fiscal and income policies affect prices and output in a small open economy and discuss which policy measures are effective and feasible in the face of inflationary shocks. We build a stock-flow-consistent model using sectoral data for Denmark. We then replicate the inflationary environment faced by Denmark and several other countries after the Covid-19 crisis. While taking monetary tightening as a forced policy response for a small open economy with fixed exchange rate, we explore a number of policies that, within the current institutional and legal framework, can potentially mitigate the effects of inflation. Our conclusion is that a close coordination of fiscal and income policies can help reduce the effects of adverse shocks to income without increasing inflation. Furthermore, we find that of all the policies implemented, monetary policy has the most dramatic effects on public debt sustainability.
Fil: Raza, Hamid. Aalborg University Business School. MaMTEP; Denmark.
Fil: Laurentjoye, Thibault. Aalborg University Business School. MaMTEP; Denmark.
Fil: Byrialsen, Mikael Randrup. Aalborg University Business School. MaMTEP; Denmark.
Fil: Valdecantos, Sebastián. Aalborg University, MaMTEP. Aalborg University Business School; Denmark.
description This paper provides an assessment of the different channels through which monetary, fiscal and income policies affect prices and output in a small open economy and discuss which policy measures are effective and feasible in the face of inflationary shocks. We build a stock-flow-consistent model using sectoral data for Denmark. We then replicate the inflationary environment faced by Denmark and several other countries after the Covid-19 crisis. While taking monetary tightening as a forced policy response for a small open economy with fixed exchange rate, we explore a number of policies that, within the current institutional and legal framework, can potentially mitigate the effects of inflation. Our conclusion is that a close coordination of fiscal and income policies can help reduce the effects of adverse shocks to income without increasing inflation. Furthermore, we find that of all the policies implemented, monetary policy has the most dramatic effects on public debt sustainability.
publishDate 2023
dc.date.none.fl_str_mv 2023-07-05
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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info:ar-repo/semantics/articulo
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status_str publishedVersion
dc.identifier.none.fl_str_mv https://nulan.mdp.edu.ar/id/eprint/4077/
https://nulan.mdp.edu.ar/id/eprint/4077/1/raza-etal-2023.pdf
url https://nulan.mdp.edu.ar/id/eprint/4077/
https://nulan.mdp.edu.ar/id/eprint/4077/1/raza-etal-2023.pdf
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/doi/10.1016/j.strueco.2023.06.006
info:eu-repo/semantics/dataset/url/https://nulan.mdp.edu.ar/id/eprint/4083/
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
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eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by/4.0/deed.es
dc.format.none.fl_str_mv application/pdf
dc.coverage.none.fl_str_mv Dinamarca
dc.publisher.none.fl_str_mv Elsevier B.V.
publisher.none.fl_str_mv Elsevier B.V.
dc.source.none.fl_str_mv Structural Change and Economic Dynamics, 67, 32-43. ISSN 0954-349X. 10.1016/j.strueco.2023.06.006 <https://doi.org/10.1016/j.strueco.2023.06.006>
reponame:Nülan (UNMDP-FCEyS)
instname:Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
reponame_str Nülan (UNMDP-FCEyS)
collection Nülan (UNMDP-FCEyS)
instname_str Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
repository.name.fl_str_mv Nülan (UNMDP-FCEyS) - Universidad Nacional de Mar del Plata. Facultad de Ciencias Económicas y Sociales
repository.mail.fl_str_mv cendocu@mdp.edu.ar
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