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Monetary and fiscal policy in the economic crisis

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  • Gerhard Illing

Abstract

Gerhard Illing, University of Munich, analyses monetary and fiscal policy in the economic crisis. The key problem is the conflict between price and financial-market stability: The fragile economic situation requires low interest rates; low interest rates, however, encourage the actors on the financial markets to engage in risky carry trades. For this reason, monetary policies should be decoupled from matters of finance stability.

Suggested Citation

  • Gerhard Illing, 2010. "Monetary and fiscal policy in the economic crisis," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(07), pages 10-16, April.
    • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:07:p:10-16
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    References listed on IDEAS

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    1. Günter Coenen & Christopher J. Erceg & Charles Freedman & Davide Furceri & Michael Kumhof & René Lalonde & Douglas Laxton & Jesper Lindé & Annabelle Mourougane & Dirk Muir & Susanna Mursula & Carlos d, 2012. "Effects of Fiscal Stimulus in Structural Models," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(1), pages 22-68, January.
    2. Gerhard Illing, 2004. "Monetary policy in the United States – the Fed in the interest-rate trap?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(06), pages 31-37, March.
    3. Cogan, John F. & Cwik, Tobias & Taylor, John B. & Wieland, Volker, 2010. "New Keynesian versus old Keynesian government spending multipliers," Journal of Economic Dynamics and Control, Elsevier, vol. 34(3), pages 281-295, March.
    4. Illing, Gerhard, 2004. "Geldpolitik in den USA," Munich Reprints in Economics 13068, University of Munich, Department of Economics.
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    More about this item

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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