The Dynamics Of Monetary And Fiscal Policy Across Regimes: A Review Of The Literature

Abstract

This literature review explores the coordination of monetary and fiscal policies across various political regimes, with a specific focus on the context of Pakistan. It examines the historical evolution, theoretical underpinnings, institutional dynamics, and policy frameworks that have shaped macroeconomic management over time. By reviewing both classical and contemporary perspectives, this paper highlights the implications of policy misalignment and identifies opportunities for strengthening institutional coordination. Drawing comparisons with other developing economies and Pakistan’s unique political shifts, it emphasizes the importance of integrated and adaptive policy strategies. The paper concludes by identifying key gaps in the literature and suggesting directions for future research in achieving sustainable macroeconomic governance.