VoxEU Talk

Fiscal policy and growth in light of the crisis

Robert Solow of MIT talks to Viv Davies about discretionary fiscal policy, the fiscal multiplier and automatic stabilisers in light of the financial crisis. They also discuss growth prospects for the US, the importance of international coordination of fiscal policy in Europe, the need for a more sophisticated industrial policy and the issue of global imbalances. The interview was recorded in Washington DC in March 2011 at the IMF conference, ‘Macro and Growth Policies in the Wake of the Crisis’.