Authors: Georgios Patsiolas, Ioannis Tsakalos

Title: Fiscal and Monetary policy shocks in emerging market economies

Abstract

This study attempt to examine the impact of monetary and fiscal policy in emerging economies of Russia, Brazil, China, India, Mexico, South Korea, Indonesia and South Africa. The above countries are an example for study for macroeconomics analysts as well as for economists and social scientists as the context and specifics of each country have shaped the reasons and content of these analyzes in scope and duration. Using a panel – VAR model, we evaluate the macroeconomic impact of monetary and fiscal policy shocks in the abovementioned economies. We show that monetary policy contractions lead to a fall in real economy and that an increasement of government spending has positive impact to Gross Domestic Product.