Pisani-Ferry, Jean, (2016), “The New Fiscal Reality”, Project Syndicate, 1 November “When the facts change, I change my mind. What do you do, sir?” This, reportedly, is how Keynes replied to the criticism that he had changed his position on the policy response to the Great Depression. Pragmatism of this sort is not that common: policy views are often characterized by considerable inertia. Too frequently, today’s perspectives remain shaped by …Read More

Furman, Jason, (2016), “The New View of fiscal policy and its application”, VoxEu, 2 November The landscape of the fiscal policy debate has changed over the past decade, with academics and international organisations moving away from an ‘Old View’ of fiscal policy as ineffective. This column uses examples from the US and Europe to highlight the five principles of a ‘New View’ of fiscal policy, which increasingly appreciates that expansionary …Read More

Otmar Issing, (2016), “Central Banks and the Revenge of Politics”, Project Syndicate, 1 November The reputation of central banks has always had its ups and downs. For years, central banks’ prestige has been almost unprecedentedly high. But a correction now seems inevitable, with central-bank independence becoming a key casualty. Relevant Posts Shen, Dennis, (2016), “Central banks are facing a crisis of confidence – it’s time to reinvent global monetary policy”, LSE …Read More

D.Sachs, Jeffrey, (2016), “Investment for Sustainable Growth”, Project Syndicate, 31 October The big disappointment in the world economy today is the low rate of investment. In the years leading up to the 2008 financial crisis, growth in high-income countries was propelled by spending on housing and private consumption. When the crisis hit, both kinds of spending plummeted, and the investments that should have picked up the slack never materialized. This …Read More