Highly effective fiscal policy, even at the zero lower bound on interest rates, remains at best a theoretical possibility, subject to severe political constraints. While fiscal consolidation may imply some short-term costs, especially in a recession, the long-term costs of delay are large.
STANFORD – Around the world, raging debates about whether, when, how, and how much to reduce large budget deficits and high levels of sovereign debt are dividing policymakers and publics. Diametrically opposed spending, tax, monetary, and regulatory policies and proposals are proliferating. To consolidate (the budget), or not to consolidate, that is the question.
STANFORD – Around the world, raging debates about whether, when, how, and how much to reduce large budget deficits and high levels of sovereign debt are dividing policymakers and publics. Diametrically opposed spending, tax, monetary, and regulatory policies and proposals are proliferating. To consolidate (the budget), or not to consolidate, that is the question.