Advanced economies find themselves in an unusual fiscal environment marked by high levels of debt and low interest rates. There is much debate about the appropriate policy response to this environment, and decisions made now will have significant impacts on economies for years to come. How can policymakers make sense of the current state of affairs? What is the appropriate course of action? This book discusses the issues, reviews the theory and the evidence, and draws practical implications for fiscal policy in advanced economies. Many questions do not yet have full answers, and author Olivier Blanchard identifies zones of uncertainty or disagreement.
The primary audience for this book is primarily policy makers and their staff, who have to navigate complex waters over the coming years, and researchers working on fiscal issues. In an effort to provide this information as quickly as possible to the people who need it most, this early draft is being made available ahead of its publication in traditional book form. This draft has already benefitted from early feedback from a number of economic experts. Our hope with this open peer review process is to solicit additional comments from scholars and policymakers that will bring to light additional views and perspectives to help make sense of this moment and set a course for a sound fiscal future.
The first draft for open review was published in December 2021, and the review period for the first draft closed on January 18, 2022. This revised draft reflects edits the author made in response to the feedback received during the open review period, and a traditional closed peer review process. To toggle between the revised draft and the first draft in the Pub History, click on each chapter below and choose the version from the “Last Released” dropdown icon. Both drafts will remain online with the ability to leave additional comments. The MIT Press will publish the revised edition in print and eBook editions in January 2023.
Feel free to share the link to this page with anyone who may be interested in the content, whether or not they intend to leave comments. To comment, simply create a PubPub account, and sign in. As you’re reading, you can highlight the text you want to comment on, and an icon will pop up for you to write your comment inline. You can also make general comments at the end of each chapter.
To Bob Solow.