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Fiscal Policy (Auerbach)

Fiscal policy by Alan J. Auerbach published by PIIE (10/2017). “Fiscal policy is back, largely as a consequence of the very severe, prolonged Great Recession/global financial crisis that led into the challenges facing monetary policy as it was forced to confront the limitations presented by the Zero Lower Bound (ZLB). But the practice of fiscal policy remains subject to some controversy, related to long-standing issues as well as ones of relatively recent vintage. In this paper, i address several challenges that currently confront the United States and other developed countries in seeking the appropriate fiscal policy path.”

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