Geneva Report 23 | It’s All in the Mix: How Monetary and Fiscal policies Can Work or Fail Together
Published on 14 December 2020. Since the Global Financial Crisis, central banks in advanced economies have expanded their set of tools, without being able to meet official inflation targets. The massive economic crisis associated with the Covid-19 pandemic has exacerbated this problem and highlighted the need for better coordination between monetary and fiscal policy. The need for a coordinated and effective policy mix has rarely been more pressing.
Authored by leading European Economists, Elga Bartsch, Agnès Bénassy-Quéré, Giancarlo Corsetti and Xavier Debrun, the new CEPR and ICMB Geneva Report on the World Economy calls for a more effective and coordinated fiscal and monetary policy mix to deal with the extraordinary challenges currently facing European economies, and discusses the institutional and economic preconditions necessary for that policy mix to deliver.