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.