Thursday, February 18, 2010
Very Intriguing Article on Macro Policy
When discussing economic policy (monetary and fiscal) with students, the "easy" part is explaining how each tool is supposed to act. The harder part is discussing the impact of the policy mix. Here is an article is an article from Voxeu that,while not solving the problem, provides some lessons learned about policy mix as a result of the current downturn. Admittedly, it does not say "Do this." But I think it does provide some context for discussion on the limits of each kind of policy. Do you agree?