Stabilizing the Economy
Contributions from the top economists and policy makers.Investigates the economic downturn of 2001 - 2002 - among the most aggressively counter - cyclical in history.
Discusses government use of monetary and fiscal policy to stabilize the economy.
The stabilization of business cycles is under heated policy debate.
The response of U.S. macroeconomic policy to the economic downturn of 2001 - 2002 was among the most aggressively counter - cyclical in history, while the response of the Japanese macroeconomic policy to a decade of stagnation was among the least activist in history. The European Union has self - imposed constraints on monetary and fiscal stabilization, while emerging markets have criticized the IMF constraining counter - cyclical policies too much in its adjustment programs. Should governments use monetary and fiscal policy to try to stabilize the real economy? Under what conditions? Does international integration change the capaity of monetary and fiscal policy to do so? This book brings together top economists and policymakers to debate these issues.