The impact of the monetary - fiscal policy mix on investments of euro area countries in the context of the financial crisis ; MONETARINĖS IR FISKALINĖS POLITIKOS DERINIMO ĮTAKA EURO ZONOS ŠALIŲ INVESTICIJOMS FINANSŲ KRIZĖS KONTEKSTE
During the financial crisis it was observable, significant increase in budgetary expenditure in the euro area. This was associated with an increase inter alia in public investment expenditure. Fiscal authorities trying to stimulate the economy have decided to increase spending to inhibit the effects of the financial crisis such as the decline in investment, employment and overall GDP in the euro area. Also, the monetary authorities cutting interest rates to the lowest levels in history, aimed at encouraging businesses to borrow and invest. However, the financial crisis is causing too much uncertainty in the financial markets, causing aversion of entities to borrow, invest, increasing spending. Thus, the level of investment in the economy has been significantly reduced. Gross fixed capital formation of businesses fell up to about - 20% of GDP. During the financial crisis, despite a coordinated fiscal and monetary policy in the euro zone, the economic authorities did not prevent EMU, before a significant decline in investment and economic activity. However, it should be noted that without the ECB's anti-crisis measures and the fiscal authorities the recent financial crisis could even lead to the collapse of the euro zone. ; The study presents the impact of monetary-fiscal policy mix on economic growth, mainly for the investments of euro area in financial crisis. Fiscal policy and monetary policy play an important role in the economy, influencing each other and on a number of economic variables as well. In the face of the recent financial crisis, which turned into a debt crisis, fiscal and monetary authorities have been working together to revive economic activity. There was a significant economic impact on the level of government investments. The central bank kept interest rates at very low levels and used nonstandard instruments of monetary policy. Fiscal authorities have increased government spending to stimulate investment and economic recovery. The paper concludes that the management of the fiscal and monetary authorities in a crisis situation has been modified compared to the period before the crisis, when the coordination of these policies was clearly weaker. Appropriate coordination of monetary and fiscal policy has a positive impact on many economic variables. The lack of cooperation between fiscal and monetary authorities can lead to many adverse effects on the economy. Using graphic presentation method there were analysed presented economic variables, reflecting the strength at which the financial crisis has affected the economy in the euro zone. It also highlights the impact of the policy mix for investment and economic growth. Analyzing in this article the macroeconomic policy mix, there is emphasized that the ECB (European Central Bank) focuses too much on low inflation target and price stability. The object of the research is the extent of cooperation between monetary and fiscal authorities in the face of the financial crisis. The purpose of the research is to highlight the importance of cooperation between monetary and fiscal policies for the growth of investment and economic activity. Tasks of research: to analyze the impact of monetary and fiscal decisions on the level of economic growth in euro area; to point to the size of government expenditure and investment during the financial crisis, to present the factors which influence on the level of the investment in the economy of the Eurosystem in the financial crisis. Following methods were used in this research: review of scientific literature, statistic research methods, graphic presentation methods and others. ; Stebint ECB ir euro zonos fiskalinių institucijų politiką, galima daryti išvadą, kad mišrios politikos koordinavimas finansų krizės metu pasiekė aukštą lygį. Bet ar tai buvo pakankama? Ar galima būtų išvengti skolų krizės euro zonoje? ECB, Europos Komisija ir nacionalinės vyriausybės siekia skatinti investicijas ir vartojimą. ECB reikšmingai sumažino palūkanų normas ir taikė kiekybines nestandartines sušvelninimo priemones. Nepaisant to, kyla klausimas, ar rinkos likvidumo palaikymo veiksmai buvo būtini ir efektyvūs. Žinoma, pinigų politika, apimanti tik palūkanų normų kontrolę, pasirodė esanti nepakankama. Tuo tarpu mokesčių institucijos darė stimuliuojantį poveikį ekonominei veiklai euro zonoje. Vykstant globalizacijos procesui, euro zonos finansų valdymo poveikis atsispindėjo ne tik Europos Sąjungoje, bet ir visame pasaulyje.