Luca Fornaro on Hysteresis, Endogenous Growth, and Aggregate Demand Policies
Macro Musings with David Beckworth
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Navigating Economic Policy: Growth and Debt Challenges
This chapter explores the complexities of economic policy in the U.S., focusing on the interplay between fiscal policy, public debt, and inflation challenges. The discussion introduces nominal GDP targeting as a potential solution for stabilization while emphasizing the importance of combining monetary and fiscal responses. It highlights the risks of fiscal stagnation and the crucial need for credible policies to stimulate growth in the face of high government debt.
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