Macroeconomic policy in light of the credit crunch: The return of counter-cyclical fiscal policy?

Oxford Review of Economic Policy

Volumn 26, Issue 1, 2010, Pages 71-86

  Wren Lewis, Simon ^a  

^a MERTON COLLEGE   (United Kingdom)

Author keywords

Conventional assignment; Credit crunch; Fiscal policy; Government debt

Indexed keywords

BANKING; DEBT; FINANCIAL CRISIS; FISCAL POLICY; INFLATION; INTEREST RATE; MACROECONOMICS; MONETARY POLICY; REGULATORY APPROACH;

UNITED STATES;

EID: 77953425714     PISSN: 0266903X     EISSN: 14602121     Source Type: Journal    
DOI: 10.1093/oxrep/grp034     Document Type: Article

References (26)

1. Barrell, R., and Weale, M. (2010), 'Fiscal Policy, Fairness between Generations, and National Saving', Oxford Review of Economic Policy, 26(1), 87-117.
2. Beaudry, P., and Lahiri, A. (2009), 'Risk Allocation, Debt Fueled Expansion and Financial Crisis', NBER Working Paper No 15110.
3. Benigno, P., and Woodford, M. (2003), 'Optimal Monetary and Fiscal Policy: A Linear-Quadratic Approach', NBER Macroeconomic Annual.
4. Bernanke, B. (2005), 'The Global Saving Glut and the US Current Account Deficit', Sandridge Lecture, Virginia Association of Economics, Richmond, Virginia (see http://www.federalreserve.gov/boarddocs/ speeches/2005/200503102/).
5. Booth, P. (ed.) (2009), Verdict on the Crash: Causes and Policy Implications, IEA.
6. Buiter, W. (2010), 'The Limits to Fiscal Stimulus', Oxford Review of Economic Policy, 26(1), 48-70.
7. Chung, H., Davig, T., and Leeper, E. M. (2007), 'Monetary and Fiscal Policy Switching', Journal of Money, Credit and Banking, 39(4), 809-42.
8. Dale, S., Proudman, J., and Westaway, P. (2010), 'The Inflation-targeting Regime in the United Kingdom: A View from Threadneedle Street', Oxford Review of Economic Policy, 26(1), 3-14.
9. De Grauwe, P. (2009), 'Why Should We Believe the Market this Time?', Vox E U, 7 February.
10. Dooley, M., and Garber, P. (2009), 'Global Imbalances and the Crisis: A Solution in Search of a Problem', Vox E U, 21 March.
11. Eggertsson, G., and Woodford, M. (2003), 'The Zero Bound on Interest Rates and Optimal Monetary Policy', Brookings Papers on Economic Activity, 1, 212-19.
12. Eggertsson, G., and Woodford, M. (2004),'Optimal Monetary and Fiscal Policy in a Liquidity Trap', NBER International Seminar on Macroeconomics.
13. Eichengreen, B. (2009), 'The Last Temptation of Risk', The National Interest, May/June.
14. Eser, F., Leith, C., and Wren-Lewis, S. (2009), 'When Monetary Policy is All You Need', Oxford University Discussion Paper.
15. Faruqee, H., Scott, A., and Tamirisa, N. (2009), 'In Search of a Smoking Gun: Macroeconomic Policies and the Crisis', Oxford Review of Economic Policy, 25(4), 553-80.
16. Kirsanova, T., Leith, C., and Wren-Lewis, S. (2006), 'Should Monetary Policy Target Consumer Price Inflation or the Exchange Rate', The Economic Journal, 116, F208-31.
17. Kirsanova, T., Leith, C., and Wren-Lewis, S. (2007), 'Optimal Debt Policy, and an Institutional Proposal to Help in its Implementation', European Economy Economic Papers No. 275, April.
18. Kirsanova, T., Leith, C., and Wren-Lewis, S. (2009), 'Monetary and Fiscal Policy Interaction: The Current Consensus Assignment in the Light of Recent Developments', The Economic Journal, 119(541), F482-96.
19. Leeper, E. M. (1991), 'Equilibria under Active and Passive Fiscal Policies', Journal of Monetary Economics, 27, 129-47.
20. Leeper, E. M. (2009), 'Anchoring Fiscal Expectations', Reserve Bank of New Zealand Bulletin, forthcoming.
21. Leith, C., and Wren-Lewis, S. (2007a), 'Fiscal Sustainability in a New Keynesian Model', Oxford University Discussion Paper No. 310.
22. Leith, C., and Wren-Lewis, S. (2007b), 'Counter-cyclical Fiscal Policy: Which Instrument is Best?', Glasgow University, mimeo.
23. Schmitt-Grohe, S., and Uribe, M. (2004), 'Optimal Fiscal and Monetary Policy Under Sticky Prices', Journal of Economic Theory, 114, 198-230.
24. Thanassoulis, J. (2009), 'Now is the Right Time to Regulate Bankers' Pay', Economist Voice, 6(5).
25. Wren-Lewis, S. (2000), 'The Limits to Discretionary Fiscal Stabilization Policy', Oxford Review of Economic Policy, 16, 92-105.
26. Wren-Lewis, S. (2003), 'The Compatability between Monetary and Fiscal Policies under EMU', in M. Buti (ed.), Monetary And Fiscal Policies In EMU: Interactions And Coordination, Cambridge, Cambridge University Press.