IDEAS home Printed from https://ideas.repec.org/a/pal/buseco/v51y2016i3d10.1057_s11369-016-0006-0.html
   My bibliography  Save this article

The Case for an Active Fiscal Policy in the Developed World

Author

Listed:
  • Angel Ubide

    (Goldman Sachs & Co)

Abstract

In this world of zero interest rates, fiscal policy has to contribute to support aggregate demand. A well-designed expansionary fiscal policy can contribute to better economic outcomes in three ways. First, it could boost potential growth by investing in activities that raise productivity. Second, it could help monetary policy become more effective by increasing the supply of government bonds and raising the equilibrium real interest rate. Third, it would help reduce income inequality.

Suggested Citation

  • Angel Ubide, 2016. "The Case for an Active Fiscal Policy in the Developed World," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 51(3), pages 158-160, July.
    • Handle: RePEc:pal:buseco:v:51:y:2016:i:3:d:10.1057_s11369-016-0006-0
    DOI: 10.1057/s11369-016-0006-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s11369-016-0006-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s11369-016-0006-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jacob Funk Kirkegaard, 2015. "Toward a European Migration and Mobility Union," Policy Briefs PB15-23, Peterson Institute for International Economics.
    2. Angel Ubide, 2015. "Stability Bonds for the Euro Area," Policy Briefs PB15-19, Peterson Institute for International Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van Riet, Ad, 2017. "Monetary Policy Stretched to the Limit: How Could Governments Support the European Central Bank?," MPRA Paper 83451, University Library of Munich, Germany.
    2. Ad van Riet, 2018. "The European Central Bank as the Only Game in Town: How Could Fiscal Policy Makers Play Along?," Credit and Capital Markets, Credit and Capital Markets, vol. 51(1), pages 93-111.
    3. Gautam Negi, 2021. "Fiscal Impulse And Sectoral Output €“ Evidence From Indian States," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 28, pages 151-167, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Markus K. Brunnermeier & Sam Langfield & Marco Pagano & Ricardo Reis & Stijn Van Nieuwerburgh & Dimitri Vayanos, 2017. "ESBies: safety in the tranches," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(90), pages 175-219.
    2. Massimo Amato & Everardo Belloni & Paolo Falbo & Lucio Gobbi, 2021. "Europe, public debts, and safe assets: the scope for a European Debt Agency," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 823-861, October.
    3. Atanas Pekanov, 2019. "Policy Brief: Past and Present of EMU Reform. Reforming the Euro Area – The Road Not (Yet) Taken," WIFO Studies, WIFO, number 61850, February.
    4. Jeromin Zettelmeyer & Álvaro Leandro, 2018. "The Search for a Euro Area Safe Asset," Working Paper Series WP18-3, Peterson Institute for International Economics.
    5. Álvaro Leandro & Jeromin Zettelmeyer, 2019. "Creating a Euro area safe asset without mutualizing risk (much)," Capital Markets Law Journal, Oxford University Press, vol. 14(4), pages 488-517.
    6. Atanas Pekanov, 2018. "The New View on Fiscal Policy and its Implications for the European Monetary Union," WIFO Working Papers 562, WIFO.
    7. Basu Kaushik, 2016. "The Economics and Law of Sovereign Debt and Risk Sharing: Some Lessons from the Eurozone Crisis," Review of Law & Economics, De Gruyter, vol. 12(3), pages 495-506, November.
    8. repec:ces:ifodic:v:16:y:2018:i:2:p:50000000002759 is not listed on IDEAS
    9. Massimo Bordignon & Angelo Stefano Baglioni, 2018. "The Future of Fiscal Policy in the Euro Area," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 16(02), pages 32-37, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:buseco:v:51:y:2016:i:3:d:10.1057_s11369-016-0006-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.