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interaction between monetary and fiscal policy amounts to imposing a number of restrictions on the effects of monetary and fiscal policy. In fact, there is a well-known common pattern in identifying the restrictions on the effects of monetary policy, but there is a critical lack of

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Jordan (1998), Gerlach (2016), Gerlach and Jordan (2012), Bernholz (2007) and Rich (2003). 2 Bretton Woods and the oil crises of the 1970s are followed by the Great Moderation, and subsequently the global financial crisis of the late 2000s. ... aggregate supply shocks, …

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