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All is Quiet in the Fiscal Front: Fiscal Policy for the Global Economic Crisis

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  • Matías Vernengo
  • Esteban Pérez Caldentey

Abstract

The current economic global crisis has thrown fiscal policy onto the center stage. However, the current crisis episode has not produced any change regarding the standing role and function of fiscal policy in developed and developing market economies that has dominated the economics profession for decades. In fact, the uncertain prospects for recovery underscore the fact that free market economies lack the mechanisms to bring about and maintain full employment. Full employment requires designing and making operational institutions at the national and global levels that can manage aggregate demand. This paper reviews the evidence on current fiscal efforts around the world.

Suggested Citation

  • Matías Vernengo & Esteban Pérez Caldentey, 2010. "All is Quiet in the Fiscal Front: Fiscal Policy for the Global Economic Crisis," Working Paper Series, Department of Economics, University of Utah 2010_02, University of Utah, Department of Economics.
    • Handle: RePEc:uta:papers:2010_02
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    References listed on IDEAS

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    More about this item

    Keywords

    Fiscal Policy; Fiscal Deficit;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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