Fiscal Policy under Low Interest Rates
Rethinking fiscal and monetary policy in an economic environment of high debt and low interest rates. Policy makers in advanced economies find themselves in an unusual fiscal environment: debt ratios are historically high, and—once the fight against inflation is won—real interest rates will likely b...
Sparad:
| Huvudupphov: | |
|---|---|
| Materialtyp: | Online |
| Språk: | engelska |
| Utgiven: |
The MIT Press
2023
|
| Ämnen: | |
| Länkar: | ONIX_20230215_9780262372961_25 |
| Taggar: |
Inga taggar, Lägg till första taggen!
|
| _version_ | 1869529145941164032 |
|---|---|
| author | Blanchard, Olivier |
| author_browse | Blanchard, Olivier |
| author_facet | Blanchard, Olivier |
| author_sort | Blanchard, Olivier |
| collection | Directory of Open Access Books |
| description | Rethinking fiscal and monetary policy in an economic environment of high debt and low interest rates. Policy makers in advanced economies find themselves in an unusual fiscal environment: debt ratios are historically high, and—once the fight against inflation is won—real interest rates will likely be very low again. This combination calls for a rethinking of the role of fiscal and monetary policy—and this is just what Olivier Blanchard proposes in Fiscal Policy under Low Interest Rates. There is a wide set of opinions about the direction that fiscal policy should take. Some, pointing to the high debt levels, make debt reduction an absolute priority. Others, pointing to the low interest rates, are less worried; they suggest that there is still fiscal space, and, if justified, further increases in debt should not be ruled out. Blanchard argues that low interest rates decrease not only the fiscal costs of debt but also the welfare costs of debt. At the same time, he shows how low rates decrease the room to maneuver in monetary policy—and thus increase the benefits of using fiscal policy, including deficits and debt, for macroeconomic stabilization. In short, low rates imply lower costs and higher benefits of debt. Having sketched what optimal policy looks like, Blanchard considers three examples of fiscal policy in action: fiscal consolidation in the wake of the Global Financial Crisis, the large increase in debt in Japan, and the current US fiscal and monetary policy mix. His conclusions hold practical implications for economic and fiscal policy makers, bankers, and politicians around the world. |
| format | Online |
| id | doab-20.500.12854ir-96985 |
| institution | Directory of Open Access Books |
| language | eng |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | The MIT Press |
| publisherStr | The MIT Press |
| record_format | ojs |
| spelling | doab-20.500.12854ir-969852024-03-30T02:53:41Z Fiscal Policy under Low Interest Rates Blanchard, Olivier Macroeconomics Monetary economics Central / national / federal government policies thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy Rethinking fiscal and monetary policy in an economic environment of high debt and low interest rates. Policy makers in advanced economies find themselves in an unusual fiscal environment: debt ratios are historically high, and—once the fight against inflation is won—real interest rates will likely be very low again. This combination calls for a rethinking of the role of fiscal and monetary policy—and this is just what Olivier Blanchard proposes in Fiscal Policy under Low Interest Rates. There is a wide set of opinions about the direction that fiscal policy should take. Some, pointing to the high debt levels, make debt reduction an absolute priority. Others, pointing to the low interest rates, are less worried; they suggest that there is still fiscal space, and, if justified, further increases in debt should not be ruled out. Blanchard argues that low interest rates decrease not only the fiscal costs of debt but also the welfare costs of debt. At the same time, he shows how low rates decrease the room to maneuver in monetary policy—and thus increase the benefits of using fiscal policy, including deficits and debt, for macroeconomic stabilization. In short, low rates imply lower costs and higher benefits of debt. Having sketched what optimal policy looks like, Blanchard considers three examples of fiscal policy in action: fiscal consolidation in the wake of the Global Financial Crisis, the large increase in debt in Japan, and the current US fiscal and monetary policy mix. His conclusions hold practical implications for economic and fiscal policy makers, bankers, and politicians around the world. 2023-02-15T14:33:08Z 2023-02-15T14:33:08Z 2022 book ONIX_20230215_9780262372961_25 9780262372961 9780262544870 https://directory.doabooks.org/handle/20.500.12854/96985 eng The MIT Press image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International https://doi.org/10.7551/mitpress/14858.001.0001 The MIT Press The MIT Press 10.7551/mitpress/14858.001.0001 10.7551/mitpress/14858.001.0001 ae0cf962-f685-4933-93d1-916defa5123d 9780262372961 9780262544870 The MIT Press 176 Cambridge open access |
| spellingShingle | Macroeconomics Monetary economics Central / national / federal government policies thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy Blanchard, Olivier Fiscal Policy under Low Interest Rates |
| title | Fiscal Policy under Low Interest Rates |
| title_full | Fiscal Policy under Low Interest Rates |
| title_fullStr | Fiscal Policy under Low Interest Rates |
| title_full_unstemmed | Fiscal Policy under Low Interest Rates |
| title_short | Fiscal Policy under Low Interest Rates |
| title_sort | fiscal policy under low interest rates |
| topic | Macroeconomics Monetary economics Central / national / federal government policies thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy |
| topic_facet | Macroeconomics Monetary economics Central / national / federal government policies thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy |
| url | ONIX_20230215_9780262372961_25 |
| work_keys_str_mv | AT blanchardolivier fiscalpolicyunderlowinterestrates |