Professor Giancarlo Corsetti, Luca Dedola, Marek Jarocinski, Bartosz Mackowiak, Sebastian Schmidt have written a new joint column for VoxEU, on "Business cycle stabilisation in the Eurozone".

Business cycle stabilisation policy in the Eurozone may end up being far from optimal if member states must tighten fiscal policy amid weak economic activity while monetary policy is constrained by the lower bound on nominal interest rates. This column surveys the recent literature formulating practical lessons for the Eurozone’s ability to implement an effective monetary–fiscal policy mix.

Link: http://voxeu.org/article/business-cycle-stabilisation-eurozone.

Published on - Monday 23rd October 2017

Business Cycles

Eurozone

Stability

Fiscal Policy