Optimal Fiscal Policy in the Post-Crisis World

@inproceedings{Caprioli2010OptimalFP,
  title={Optimal Fiscal Policy in the Post-Crisis World},
  author={Francesco Caprioli and Pietro Rizza and Pietro Tommasino},
  year={2010}
}
To contrast the severe global recession of 2009, governments in most advanced countries implemented expansionary fiscal policies leading to a steep increase in public debt. As economies recover, a critical choice is whether to stabilize debt at post-crisis levels, or to bring it down to pre-crisis levels. On this issue, advices of international institutions and those coming from mainstream economic theory are at odds. While international institutions have called for a substantial and fast debt… CONTINUE READING

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