Looking forward: exiting unconventional monetary policy

Buchbeitrag

With interest rates in most developed countries close to zero, it is not possible for monetary policymakers to stimulate the economy by reducing interest rates. As a result the economy is unusually sensitive to the possibility of deflation, and thoughts turn to fiscal policy in order to stabilize output and prices. This paper summarizes the current academic debate on the role of fiscal policy under current conditions. In particular, this paper argues that policymakers need to be explicit about their objectives concerning spending, debt, and inflation, to avoid expectations-driven fluctuations in output and inflation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: In: The crisis and beyond ; Year: 2009 ; Pages: 50-55 ; Ed(s).: Klodt, Henning ; Lehment, Harmen ; Kiel: Kiel Institute for the World Economy

Classification and Topics

• Classification: Wirtschaft
• Subject: Geldpolitik ; Policy-Mix ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Tesfaselassie, Mewael F.
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/32960
• Last update: 10.03.2025, 11:43 AM CET