A fiscal alternative to stabilise the post-Covid economy
Columbia professor Michael Woodford calls on policy-makers to think beyond interest rates
Fiscal transfers may be a more adequate tool to stimulate the global economy after the Covid-19 shock, said Columbia University professor Michael Woodford during a speech today (September 4).
“I’d urge people to think that lowering real interest rates on safe assets further is not always the central problem. We may need to move away from the reliance on interest rate cuts to stabilise the economy,” he said.
Delivering the Jean Monnet Lecture during the European Central Bank’s (ECB) annual
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