Wolff, Guntram, B., (2016), “The G20’s structural reform agenda should address income gap and financial system fragility”, Bruegel, 15 March
Traditional macroeconomic policies have been important in stabilizing the global economy, but they are no longer enough to addressing the fragility and low growth of the current economic environment. In particular, they cannot sustainably address the persistent weakness of demand, let alone drive new productivity growth. Such policies have far more limited ammunition now than 8 years ago, when the global crisis erupted. Monetary policy in numerous large countries is at the zero lower bound, and interest rates can hardly be lowered further. Fiscal policies are more constrained in some countries now than they were before the crisis.
Relevant Posts
- Milanovic, Branko, (2016), “Introducing Kuznets waves: How income inequality waxes and wanes over the very long run”, Voxeu, 24 February.
- Bengtsson, Erik, Waldenström, Daniel, (2015), “Capital shares and income inequality: Evidence from the long run”, Centre for Economic Policy Research, December.