MACRO POLICY

Macro Policy

Macro Policy

In practice, as monetary policy, the rhetoric was stronger than reality. The discretionary fiscal stimulus measures were general accepted to face severe shocks (eg. during the Japanese crisis of the early nineties). And the designers sometimes resorted to even for discretionary fiscal stimulus "Normal recessions." The counter-cyclical fiscal stance also deemed desirable in principle (but elusive in practice) in emerging markets with limited automatic stabilizers. This often took the form of calls for caution strongest fiscal periods of rapid economic growth. And even for emerging markets, the recipe for the medium-term consensus was strengthen the stabilizers ...