Description
Fiscal Policy under Low Interest Rates presents Olivier Blanchard’s comprehensive analysis of how traditional fiscal policy frameworks must adapt when interest rates approach zero. The book challenges long-held assumptions about government debt and spending, arguing that conventional constraints on fiscal policy may not apply in low interest rate regimes.
Blanchard explores the relationship between fiscal multipliers, monetary policy coordination, and economic stability. He examines empirical evidence and theoretical models to demonstrate how low rates fundamentally change the calculus for policymakers. The work addresses crucial questions about debt sustainability, inflation dynamics, and the appropriate role of government spending in stabilizing economies.
This influential work is essential for economists, policymakers, and finance professionals seeking to understand modern monetary-fiscal policy interactions and the new economic reality of persistently low interest rates.
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