HKS Affiliated Authors
James W. Harpel Professor of Capital Formation and Growth
Excerpt
Excerpt
Rediscovering Fiscal Policy at the G7. Jeffrey Frankel, May 24, 2016, Opinion. "As G7 leaders convene in Ise-Shima, Japan, the global economy’s fragility is a top concern. But instead of focusing on currency wars, the leaders of the major developed economies should be discussing fiscal policy, which under current conditions would be a more powerful tool than monetary policy for boosting economic activity. After all, today, unlike in normal times, the effects of fiscal policy would not be limited by too-high interest rates, inadequate private demand, strict capacity constraints, or excessive inflation." Link