This site is for archive purposes. Please visit www.eliamep.gr for latest updates
Go to Top

The case for an active fiscal policy

Ubide, Ángel, (2016), “The case for an active fiscal policy”, VoxEU, 11 Οκτωβρίου

The pre-crisis consensus was, and remains, very strong – the business cycle would be managed by monetary policy, while fiscal policy would focus solely on debt sustainability. In a world of zero interest rates, however, fiscal policy has to contribute to supporting aggregate demand and protecting against deflationary risks. This column outlines three ways in which a well-designed expansionary fiscal policy stance can contribute to better economic outcomes.

Σχετικές Αναρτήσεις