14min chapter

Macro Musings with David Beckworth cover image

Marijn Bolhuis on Fiscal R-star and its Implications for Macroeconomic Policy

Macro Musings with David Beckworth

CHAPTER

Fiscal-Monetary Interplay

This chapter explores the complex relationship between fiscal and monetary policies, particularly in light of pandemic-induced economic disruptions. The speakers analyze the concept of 'Fiscal R-Star' and discuss how government borrowing influences central bank actions, highlighting historical patterns of tension and their macroeconomic implications. Through historical examples, they illustrate the nuanced dynamics of active versus passive fiscal policies and the significance of these interactions in shaping economic policy.

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