So while the world’s major economies have been experimenting with stimulus through monetary policy (see my earlier post, link below) since the GFC, using fiscal policy as stimulus is not as fashionable as the opposite – austerity measures.
Fiscal stimulus seems to have worked in Australia and you’d have to be pretty contrarian to dispute that Labor did a good job of managing us through the wake of the GFC.
So it’s great that the world’s now having a real conversation about whether debt is as bad as it is made out to be, largely thanks to this guy.
- Stiglitz Says More Fiscal Stimulus Needed in U.S.: Tom Keene – Bloomberg (bloomberg.com)
- Overburdened monetary policy and under-utilized fiscal policy (anirrationalviewoftheirrational.wordpress.com)
- Some unconventional concerns for the G24 this weekend (terrimbutler.wordpress.com)