Alan J Auerbach, Yuriy Gorodnichenko, Monday, December 10, 2012 - 00:00

It's tough out there for policymakers seeking to stabilise economies, and shocks from abroad aren't helping. This column argues that for countries hit by recession, fiscal stimulus in another country might significantly stimulate demand back at home, softening the worse effects of the current crisis. The evidence suggests that transnational coordination of fiscal policy may well be more valuable than previously thought.

CEPR Policy Research