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Economic Commentary

Is Current Fiscal Policy an Obstacle to Sound Monetary Policy?

Must the pursuit of sound monetary policy await further progress toward more desirable fiscal policies? Arguments that monetary policy must offset the economic effects of fiscal policy choices may be based on false premises.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Hoskins, W. Lee. 1990. “Is Current Fiscal Policy an Obstacle to Sound Monetary Policy?” Federal Reserve Bank of Cleveland, Economic Commentary 2/1/1990.