Has the time come to fiscal policy? The impact of the macroeconomic policies in the USA after the 2008 financial crisis and lessons to the pandemic
The impact of the macroeconomic policies in the USA after the 2008 financial crisis and lessons to the pandemic
The 2008 financial crisis ended the period of the ‘great moderation’, which consolidated the ‘new macroeconomic consensus’ and the Inflation Target Regime. The contribution of this article is, based on the American experience, to discuss the crisis in the conventional arrangement of economic policy that led to the adoption of unconventional measures. The review of the post-2008 framework of conventional macroeconomic policies has culminated in the adoption and recognition of the effectiveness of alternative measures, in particular as countercyclical fiscal policies and credit and quantitative easing policies. The article concludes that the measures adopted during the financial crisis did lead to significant changes in the conventional economic policy arrangement afterwards.
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