Fiscal Policy under Low Interest Rates

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.

From Summer 2023 recommended reading from MIT (MIT News).