The State of Advanced Economies and Related Policy Debates: A Fall 2016 Assessment
This Policy Brief reassesses macroeconomic policies in the current environment of low growth and low interest rates in major advanced economies. Despite low rates, demand remains anemic. The scope for monetary policy, which has carried much of the burden to stimulate demand, is increasingly limited. But there is plenty of room for fiscal policy to increase output, and it should be explored more aggressively. On specific economies, there is a strong case for higher inflation in the United States, the eurozone, and Japan, but for different reasons: In the United States, as insurance against the next recession; in the eurozone, to allow periphery countries to improve competitiveness without deflation; and in Japan, to reduce the burden of debt.
|Date of creation:||Sep 2016|
|Contact details of provider:|| Postal: 1750 Massachusetts Avenue, NW, Washington, DC 20036-1903|
Web page: http://www.piie.com
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:iie:pbrief:pb16-14. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster)
If references are entirely missing, you can add them using this form.