Asymmetic Macroeconomic Policies, Weak Rules and Muddy Growth Perspectives (Asymmetrische Makropolitiken, Schwache Regelmechanismen Und Eingetrübte Wachstumsperspektiven) (German)

11 Pages Posted: 21 Oct 2009

See all articles by Gunther Schnabl

Gunther Schnabl

University of Leipzig - Institute for Economic Policy

Date Written: October 20, 2009

Abstract

The macroeconomic policy response to the global financial and economic crisis has brought interest rates (close to) zero and the public debt to record levels despite institutionalized monetary and fiscal polity rules. The paper discusses the long-term implications of asymmetric fiscal and monetary policies which lead into liquidity traps, unsustainable public debt, declining marginal efficiency of investment, and fading growth perspectives. To escape from the liquidity trap a coordinated G3 interest rate increase is recommended.

Keywords: Monetary policy, fiscal policy, asymmetric macroeconomic policies, crisis, bubble

JEL Classification: B53, E32, E44, E63

Suggested Citation

Schnabl, Gunther, Asymmetic Macroeconomic Policies, Weak Rules and Muddy Growth Perspectives (Asymmetrische Makropolitiken, Schwache Regelmechanismen Und Eingetrübte Wachstumsperspektiven) (German) (October 20, 2009). Available at SSRN: https://ssrn.com/abstract=1491595 or http://dx.doi.org/10.2139/ssrn.1491595

Gunther Schnabl (Contact Author)

University of Leipzig - Institute for Economic Policy ( email )

Institute for Economic Policy
Grimmaische Straße 12
Leipzig, 04109
Germany

HOME PAGE: http://www.wifa.uni-leipzig.de/iwp/