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This paper investigates monetary-fiscal interactions in resource-rich emerging economies using an estimated Dynamic Stochastic General Equilibrium model. We find evidence of an active monetary and passive fiscal policy but confirm the presence of revenue substitution; a phenomenon that alters the automatic stabilizer's role of fiscal policy. Once the response of fiscal policy to oil-related flows is muted, the revenue substitution effect is neutralized, taxes respond positively to debt, and the stagflationary impacts of negative oil price shocks are ameliorated. Our findings highlight the need for dynamic tax policies that are less sensitive to receipts from resource rent as a strategy for achieving debt sustainability and overall macroeconomic stability in resource-rich countries. [ABSTRACT FROM AUTHOR]

This paper examines the role of China's factors in international commodity price fluctuations from a perspective of monetary-fiscal policy interaction. We employ a nonlinear Interacted-VAR model to investigate whether the impact of China's monetary policy shocks on international commodity prices is conditional on its fiscal policy stances. Using several measures of China's fiscal policy stance, we estimate their interaction with monetary policy identified through Interacted-VAR analysis. We find that the response of international commodity prices to China's monetary policy is much stronger and more persistent in the presence of its active fiscal policy stance. The empirical findings are very consistent when using several alternative model specifications. Moreover, our analysis suggests that failing to take into account the interaction of monetary-fiscal policies in the model might lead to incorrectly assessing the impact of monetary policy on commodity price fluctuations. In addition, our results reveal the substantial heterogeneity in the impact of China's factors on commodity prices across sectors. These empirical findings offer insights into the interaction of monetary-fiscal policies, as well as the role of China's factors in the international commodity markets. [ABSTRACT FROM AUTHOR]

This article explores Europe's external migration mix, considering three policy instruments which form part of the EU's remote control of borders: (1) visa regulations managing entry and cross-border mobility, (2) readmission agreements facilitating assisted and forced return of migrants without legal right to remain, and (3) resettlement of refugees with refugee status via formalised programmes. The article explores the degree and nature of these policies co-evolution. Based on a collation of migration policy data for 31 European countries between 1990 and 2020, we disentangle spatial, temporal, and categorical policy patterns and interactions. We find strong evidence for spatial policy dependence across European countries for all three policy areas, but particularly visa policy; evidence for some categorical dependence between selected external policies within countries, but also between external policy instruments and other migration-relevant policies; and only weak or no evidence for temporal sequencing of external policy change. The external migration policy mix appears heterogenous across different European states, but also within single European states, and vis-a-vis third country states, with whom various migration-relevant and externally oriented policies are negotiated. As a result, and perhaps surprisingly, the role of specific migration-relevant policies seems to be underestimated in strategic and overarching migration policymaking. [ABSTRACT FROM AUTHOR]

Climate policies such as carbon tax and green finance policy are critical measures to promote low-carbon transition worldwide. These policies are, however, likely to interact with each other and create unintentional consequences. This paper adopts a stock-flow consistent model to theoretically explore the effects of policy interactions. Specifically, commercial banks, as the key credit creators and critical players in providing source of finance, are included. Based on the numerical simulations of the dynamic model, we find that both carbon tax and green finance policies render positive impacts on low-carbon transition. In addition, green credit incentives, if imposed simultaneously with carbon tax, can enhance the positive effects. Although low-carbon transition could generate higher net government revenues, our results show that banking sector tends to expose to higher financial risks when firms' debt-equity ratio rises. Further analysis shows that subsidies on green loans can support green transition and bring positive consequences to debt rollover and social welfare, indicating the needs for active government intervention to improve policy effectiveness. The framework proposed in this paper provides a useful way to understand policy dilemmas in pursuing low-carbon transition and give important implications to form optimal policy mix. • A stock-flow consistent model is developed to examine climate policy interactions. • We show that climate policy-mix can generate both positive and negative effects. • Green finance policies can enhance green investment and induce higher financial risks. • Active government intervention such as green subsidies can ease financial distress and improve policy effectiveness. [ABSTRACT FROM AUTHOR]

Expanding the analysis unit from a single action situation to networks of action situations (NAS) is a theoretical development in response to complex systemic issues. However, the methodology of this emerging field is still in its infancy. This article develops an agent-situation-based model to evaluate the interaction effects of targeted policies by translating a NAS into an agent-based model (ABM). This paper applies this NAS–ABM method to China's top-down land planning control system to evaluate the performance of two cap-and-trade (CAT) policies, implemented simultaneously, which aim to preserve cultivated land and restrict land expansion for construction. The results show that either CAT policy can improve land allocation efficiency and reduce income gaps in different regions but is not Pareto-improving. Furthermore, if implemented jointly, the two CAT policies expand the income gap between urban and rural areas and are not conducive to protecting soil quality and the environment. • We develop an agent-situation-based model for networked action situations (NAS). • The model simulates well the interaction of two cap-and-trade (CAT) land policies. • Neither CAT is environment-friendly due to spatial heterogeneity reason. • The interaction of two CATs improves efficiency but enlarges the income gap. • The interaction of two CATs worsens the environmental goal of each CAT. [ABSTRACT FROM AUTHOR]