Foreign Interest Rate Shock and the Choice of Macroeconomic Policy Combinations
By constructing an open economy DSGE model with multiple macro-policies,the paper preliminarily explored the optimal macro-policy rule and the coordination of multiple policies under foreign interest rate shocks,and the results show that:(1)when foreign interest rates rise,exchange rate volatility and loan contraction tend to decrease through the implementation of relatively fixed exchange rate regimes and independent monetary policy,thus supporting total output;(2)compared with the traditional government expenditure and tax rules,the debt rule under the perspective of fiscal consolidation significantly mitigates the fluctuation of government expenditure and public debt ratio,but leads to the insufficient expansion of fiscal policy,while combination of the strengthened government expenditure and the debt rule can balance fiscal stability and policy effectiveness;(3)Based on the coordination of monetary policy and fiscal policy,macroprudential policy can work as a policy mix(including the counter-cyclical capital buffer policy and the reserve policy),which stabilizes the asset price,corporate leverage,government debt,bank leverage and other financial variables.
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