Asymmetic Macroeconomic Policies, Weak Rules and Muddy Growth Perspectives (Asymmetrische Makropolitiken, Schwache Regelmechanismen Und Eingetrübte Wachstumsperspektiven) (German)
11 Pages Posted: 21 Oct 2009
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: Suggested Citation
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