Summary of Macroeconomic Management When Policy Space Is Constrained

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Macroeconomic Management When Policy Space Is Constrained summary
Start getting smarter:
or see our plans

Rating

7 Overall

8 Importance

7 Innovation

7 Style


Recommendation

A lot has improved since the dark days of the 2008–2009 financial crisis, but many economies are still lagging far behind their potential output. Subdued interest rates and inflation underline the fragility of growth, while stubbornly high deficits inhibit fiscal policy. Economists Vitor Gaspar, Maurice Obstfeld and Ratna Sahay of the International Monetary Fund point out that despite these challenges, things are not as gloomy as they might seem. getAbstract recommends this technical, big-picture analysis of how the world economy can still return to robust growth and even ride out unexpected crises to economists, investors and executives.

In this summary, you will learn

  • How governments can increase the efficacy of their economic policies;
  • Why combining fiscal, monetary and structural plans can revive growth; and
  • Why international cooperation can reinforce domestic policies.
 

About the Authors

Vitor Gaspar and Ratna Sahay are economists at the International Monetary Fund. Maurice Obstfeld is an economics professor at the University of California, Berkeley, and the IMF’s chief economist.

 

Summary

The international stimulus of 2009–2010 brought the world economy out of a sharp recession, but since then, many governments have focused less on growth and more on public debt levels. This approach has left unemployment unnaturally high, inflation lower than economists’ targets and GDP less than its...

More on this topic

By the same authors

Revisiting the Economic Case for Fiscal Union in the Euro Area
Revisiting the Economic Case for Fiscal Union in the Euro Area
7
Get on Track with Trade
Get on Track with Trade
8
Reflating Japan
Reflating Japan
8
Spillover
Spillover
8
Rethinking Financial Deepening
Rethinking Financial Deepening
8

Customers who read this summary also read

World Economic Outlook April 2017
World Economic Outlook April 2017
7
World Economic Outlook April 2016
World Economic Outlook April 2016
7
The Eurozone’s Hidden Strengths
The Eurozone’s Hidden Strengths
8
World Economic Outlook Update, July 2017
World Economic Outlook Update, July 2017
8
World Economic Outlook October 2016
World Economic Outlook October 2016
8
Assessing the Macroeconomic Impact of Structural Reforms: The Case of Italy
Assessing the Macroeconomic Impact of Structural Reforms: The Case of Italy
7

Related Channels

Comment on this summary