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Methods of Policy Accommodation at the Interest-Rate Lower Bound 

Chia sẻ: Dadasd Aadad | Ngày: | Loại File: PDF | Số trang:97

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There is huge uncertainty about future budget deficits and their financing. Economists disagree about how quickly deficits should be reduced: some would stress deflation risks and others inflation risks. Even if economists were to agree, there would still be great uncertainty about political choices on macroeconomic policy. It is nevertheless certain that government debt/GDP ratios in major countries will continue to rise over the next few years. Even the optimistic G20 pronouncements do not envisage debt/GDP ratios in the advanced countries stabilising before 2016. Graph 3 shows projections for the United Kingdom: according to estimates prepared before the recent election,...

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