Short-Run Monetary-Fiscal Influences in a Federal State: with Application to the Canadian Economy, 1947 to 1973

Abstract

Whether nonfederal governments in a federal system act so as to stabilize or to destabilize the macroeconomy has been extensively explored. However, the analytically distinct question of what overall importance various jurisdictions have had in determining macroeconomic events has been neglected. In response to this gap, a simple approach to the investigation of monetary- fiscal influences in a federation is developed and applied.