Alina Carare, Ashoka Mody, Franziska Ohnsorge, 23 January 2009

This column argues that the German fiscal stimulus package is good, but could and should have come earlier. Moreover, it probably should have been bigger, and it definitely ought to have been better designed. The most important and lasting outcome of the package may well be the new government deficit rule, with its binding correction mechanism.

Jonathan Parker, 16 January 2009

Jonathan Parker of Northwestern University talks to Romesh Vaitilingam about the effectiveness of fiscal stimulus measures, beginning with his research on the impact of the US income tax rebates of 2001 and 2008 on household spending. The interview was recorded at the American Economic Association meetings in San Francisco in January 2009.

Daniel Gros, 21 December 2008

Most countries need a fiscal stimulus, but how should it be implemented? This column assesses fiscal policy's potential to increase demand and argues that any meaningful boost must come from transfers to the private sector, not infrastructure investments. Tax cuts will be most effective in countries where households are net borrowers.

Ralf Martin, 10 December 2008

The current crisis offers an opportunity to set the world on the right track for addressing climate change. This column suggests governments should seize this chance to promote pro-environment fiscal stimuli and to embrace future pollution taxes to pay for them.

Wendy Carlin, Andrea Boltho, 26 November 2008

Germany is in better shape than many to weather the financial crisis. But, this column argues, it needs to raise private consumption with a substantial fiscal stimulus and higher real wages, lest it run the risk of slipping into combined stagnation and deflation.

Giancarlo Corsetti, Gernot Müller, 12 November 2008

Governments are crafting fiscal stimulus packages to counter the crisis. This column highlights factors that are crucial in determining the effectiveness of such measures: the financing mix (taxes vs future spending cuts), and accompanying monetary policy. To illustrate the importance of these considerations, simulation results are presented for several stimulus packages.

Barry Eichengreen, Richard Baldwin, 10 November 2008

This column introduces a collection of essays by leading economists from around the world on what the G20 leaders should do this weekend. Four priorities are identified: nations should act quickly to strengthen and coordinate their firefighting responses; they should immediately reinforce the IMF’s ability to fire-fight the crisis as it spreads to emerging markets and vulnerable developing nations; they should 'above all, do no harm'. Finally, they should start 'thinking outside the box' when it comes to long-run fixes.

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