On the other hand, it is important to mention that achieving the goals of both policies does not happen in an inert environment. Both of them have to consider other macroe- conomic indicators, impacts of their decisions and the behaviour of the other economic- policy authorities. Then some different situations and scenarios can happen. The game theory is one of the methods how to study such situations. This approach contributes to the creation of a model. The core of this analysis is the research of reaction functions of monetary and fiscal authorities and their mutual influence.
The aim of this article is to evaluate the mutual interaction of monetary and fiscal policy in the countries of the Visegrad Group and decide which variables influence decisions of the monetary and fiscal policy.
A multivariate regression analysis is used to achieve this aim, and it is also the tool through which the dependence of the main instruments of both policies (it is a change of the primary balance as the percentage of GDP in the case of fiscal policy and the change of interest rates for monetary policy) on selected independent variables is examined. The surveyed states are the countries of the Visegrad Group, i.e. the Czech Republic, Slovakia, Poland and Hungary. The time period under observation starts with the first quarter 2000 and ends in the fourth quarter 2012.