Hüttl, Pia, Schoenmaker, Dirk, (2016), “Fiscal capacity to support large banks”, Bruegel, 3 Οctober During the global financial crisis and subsequent euro-debt crisis, the fiscal resources of some countries appeared to be insufficient to support their banking systems. These countries needed outside support to stabilise their banking systems and thereby their wider economies. This Policy Contribution assesses the potential fiscal costs of recapitalising large banks. Based on past financial crises, we estimate that the …Read More

Gaspar, Vitor, Obstfeld, Maurice, Sahay, Ratna, (2016), “Macroeconomic Management When Policy Space Is Constrained: A Comprehensive, Consistent, and Coordinated Approach to Economic Policy”,  IMF Staff Discussion Note, 28 September Concern is widespread that countercyclical policies have run out of space or lack the power to raise growth or deal with the next negative shock. The common perceptions are that the effective lower bound on policy interest rates limits the room to loosen monetary …Read More

Blanchard, Olivier, (2016), “The State of Advanced Economies and Related Policy Debates: A Fall 2016 Assessment”, Peterson Institute for International Economics, September This Policy Brief reassesses macroeconomic policies in the current environment of low growth and low interest rates in major advanced economies. Despite low rates, demand remains anemic. The scope for monetary policy, which has carried much of the burden to stimulate demand, is increasingly limited. But there is plenty …Read More