A Fine Balancing Act
With fiscal policy having gained fresh prominence, governments must carefully calibrate their policies in the pandemic’s aftermath. Read More Here
Tag: Fiscal policy
The Long Road of U.S. Fiscal Reform
President Barack Obama in his State of the Union speech reiterated his call for a bipartisan agreement that would stabilize the debt and end a period where fiscal policy has lurched from crisis to crisis. This ambition is broadly shared, but profound disagreements remain over the composition of measures to address debt and growth. Democrats […]
Why Stimulus Has Failed
Two fundamental beliefs have driven economic policy around the world in recent years. The first is that the world suffers from a shortage of aggregate demand relative to supply; the second is that monetary and fiscal stimulus will close the gap. Is it possible that the diagnosis is right, but that the remedy is wrong? […]
Is A Revolution In Economic Thinking Under Way?
Four years after the start of the Great Recession, the global economy has not recovered, voters are losing patience and governments around the world are falling like ninepins. This is a situation conducive to revolutionary thinking, if not yet in politics, then maybe in economics. In the past few months the International Monetary Fund, previously […]
Britain Risks A Lost Decade Unless It Changes Course, Says Lawrence Summers
It is the mark of science and perhaps rational thought to operate with a falsifiable understanding of how the world works. So it is fair to ask economists a fundamental question: what could happen that would cause you to revise your views of how the economy operates and acknowledge that the model you had been […]
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