DISRUPTIVE IDEAS

Is There An Optimal Policy Mix To Get The Global Economy Out Of The Current Difficult Conjuncture?

by Brunello Rosa and Nouriel Roubini

28 March 2022

In this paper we discuss:

  • The two supply-side shocks that hit the global economy since 2020: the pandemic and the war in Ukraine;
  • The policy response to the pandemic: fiscal-monetary policy coordination was the real policy innovation;
  • The response to the pandemic: an uncoordinated division of labour between governments and central banks;
  • How these policy objectives may prove conflicting: lower inflation, higher growth, debt monetisation and punishing Russia;
  • How policymakers may lack instruments to achieve all these policy goals;
  • How adopting those instruments may prove counter-productive for achieving other goals;
  • Why an optimal policy mix may not exist and policymakers may have to accept sub-optimal outcomes; and
  • The market implications of all the above.

Contact us to obtain the password to open the PDF

Download PDF: R&R on Optimal Policy Mix - March 22

YOU CAN ALSO PURCHASE THIS INDIVIDUAL PAPER DIRECTLY ON R&R's ONLINE STORE

Back to Research

Back to Homepage