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.