Monetary and fiscal policy in the coming recession
Macro Bytes
Macro Bytes
Monetary and fiscal policy in the coming recession
Nov 11, 2022
abrdn

Paul Diggle and Luke Bartholomew discuss the optimal – and likely – monetary and fiscal policy responses to the coming recession. Is it back to negative rates and quantitative easing, or will persistent inflation mean interest rates remain high even as recession hits? And are governments able to spend big to support the economy, or will they be constrained by what markets will fund and they can afford?