Exact(9)
Prolonged economic weakness does far greater damage to public finances than temporary fiscal activism.
When automatic stabilisers are accounted for, German fiscal activism is far from paltry.
What's more, Osborne has been willing to use fiscal activism to support the economy when it suits him.
Right now fiscal activism is indispensable, but the consequences will be bigger and longer-lasting than many realise.
This is the crux of Mr Grant's thesis that it cured itself, and that monetary and fiscal activism only made things worse in later downturns.
Hence her call for monetary policy – interest rates and quantitative easing – to be buttressed by structural reform and fiscal activism as part of a three-pronged approach to raise growth.
Similar(51)
There is a role for fiscal policy, industrial activism, intervention in the banking system and smart institution building.
"Our economic plan combines monetary activism with fiscal responsibility and supply-side reform.
With only brief interruptions, we've had eight decades of increasingly frenetic fiscal and monetary policy activism intended to counter the cyclical bumps and grinds of the free market and its purported tendency to underproduce jobs and economic output.
Different combinations of fiscal austerity and monetary activism will bring turbulence to currency markets, and will make likelier 2011's second policy mistake: an escalation of currency intervention, in both the rich and (especially) the emerging world.China may allow the yuan to wriggle upward, but not far.
His economic plan is simple and clear: fiscal restraint, coupled with monetary activism.
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