MIT Press · 2023
Policy makers in advanced economies find themselves in an unusual fiscal environment: debt ratios are historically high, and - once the fight against inflation is won - real interest rates will likely be very low again. This combination calls for a rethinking of the role of fiscal and monetary policy - and this is just what Blanchard proposes in this work. His conclusions hold practical implications for economic and fiscal policymakers, bankers, and politicians around the world.