DP11088 COEURE Survey: Fiscal and Monetary Policies after the Crises
Author(s): | Charles Brendon, Giancarlo Corsetti |
Publication Date: | January 2016 |
Keyword(s): | Euro-area crisis, Global Crisis, Stabilization Policies, Zero Lower Bound |
JEL(s): | E31, E32, E52, E58, E62, F45 |
Programme Areas: | Monetary Economics and Fluctuations |
Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=11088 |
We review the recent literature on macroeconomic stabilisation policy, with a particular focus on two major challenges that are particular to the post-crisis land- scape. These are, first, how to provide meaningful economic stimulus when the zero lower bound on nominal interest rates is binding. Second, how to design a stabilisation policy for the Eurozone that will remedy the large macroeconomic imbalances among member states.