Book Launch: Fiscal Policy Under Low Interest Rates (Online)

Policymakers in advanced economies find themselves in an unusual fiscal environment: Debt ratios are historically high, and—once the fight against inflation is won—real interest rates will likely be very low again.  This combination calls for a rethinking of the role of fiscal and monetary policy—and this is just what Olivier Blanchard proposes in Fiscal Policy under Low Interest Rates.

Blanchard considers three examples of fiscal policy in action: fiscal consolidation in the wake of the global financial crisis, the large increase in debt in Japan, and the current US fiscal and monetary policy mix. His conclusions hold practical implications for economic and fiscal policymakers, bankers, and politicians around the world.

A Q&A with PIIE president Adam S. Posen will follow.

Fiscal Policy under Low Interest Rates is available for preorder here.