Marijn Bolhuis, an economist at the IMF, introduces the groundbreaking concept of fiscal R-star, reshaping our understanding of macroeconomic policy. He delves into the interplay between fiscal and monetary policies, particularly post-pandemic. Bolhuis explores consumer sentiment, revealing a gap between public perception and actual economic indicators, especially regarding inflation and borrowing costs. His insights highlight the nuanced dynamics that shape today’s economic environment and the challenges faced in maintaining fiscal discipline amidst changing political landscapes.