A decade ago, there was general agreement among practitioners and academics about the conduct of policy to stabilise developed economies. Governments limited anti-recessionary policy to responses by central banks, which in turn limited their policies to adjustments in short-term interest rates through open market operations.
The effectiveness of tax rebates as countercyclical fiscal policy
Jonathan A. Parker, 17 June 2014
Housing market responses to transaction taxes: Evidence from notches and stimulus in the UK
Michael Best, Henrik Kleven, 19 December 2013
Housing wealth represents the bulk of homeowners' portfolios. Moreover the housing market is important at a macroeconomic scale, and is seen as a key link between the financial economy and the real economy. Previous work on the determinants of prices and demand in the housing market has focused primarily on the role of interest rates and other credit market conditions (Himmelberg et al.
Fiscal stimulus in times of high public debt: Reconsidering multipliers and twin deficits
Christiane Nickel, Andreas Tudyka, 7 September 2013
The stimulus impact of a government-spending shocks varies with the economic environment (Ilzetzki, Mendoza, and Végh 2013). One important determinant is the level of government indebtedness – particularly when the nation’s fiscal sustainability may be in doubt. The economic logic of this is straightforward.
The lessons of the North Atlantic crisis for economic theory and policy
Joseph Stiglitz, 9 May 2013
Editor’s note: This is the fourth of four columns sharing reflections on the recent IMF conference “Rethinking Macro Policy II: First Steps and Early Lessons”.
Preventing the next catastrophe: Where do we stand?
David Romer, 9 May 2013
Editor’s note: This is the third of four columns sharing reflections on the recent IMF conference “Rethinking Macro Policy II: First Steps and Early Lessons”.
As I listened to the presentations and discussions, I found myself thinking about the conference (IMF 2013) from two perspectives:
Rethinking macroeconomic policy
Olivier Blanchard, 9 May 2013
Editor's note: This is the second of four columns sharing reflections on the recent IMF conference “Rethinking Macro Policy II: First Steps and Early Lessons”.
The cat in the tree and further observations: Rethinking macroeconomic policy
George A. Akerlof, 9 May 2013
Editor's note: This is the first of four columns sharing reflections on the recent IMF conference “Rethinking Macro Policy II: First Steps and Early Lessons”.
Output spillovers from fiscal policy
Alan J Auerbach, Yuriy Gorodnichenko, 10 December 2012
Policymakers seeking to stabilise the economy face many challenges. A recent set of challenges is shocks from abroad. Such shocks can come from many directions: trade channels as during the Great Trade Collapse of 2009; financial linkages as during the 2008 Global Crisis; and capital flows (Crucini et al. 2008).
The Procyclicalists: Fiscal austerity vs. stimulus
Jeffrey Frankel, 7 August 2012
The world is seized by a debate between fiscal austerity and fiscal stimulus. Opponents of austerity worry about contractionary effects on the economy. Opponents of stimulus worry about indebtedness and moral hazard (see Corsetti 2012).
Fiscal spending and growth: More patterns
Céline Carrère, Jaime de Melo, 17 May 2012
As the Eurozone is entering into recession, fiscal policy has moved to centre stage. The extent of austerity has been widely attacked, including by IMF staff (Cottarelli 2012), while the design of fiscal policy, namely expenditure reductions versus tax increases (Alesina and Giavazzi 2012), has also come under scrutiny.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Cadot, de Melo, 16 June 2014