Lessons Learned From the Global Recession - Redesigned Framework of Key Macroeconomic Policies

Trenovski, Borce and Tashevska, Biljana (2017): Lessons Learned From the Global Recession - Redesigned Framework of Key Macroeconomic Policies. Forthcoming in: International Journal of Business and Globalisation , Vol. 1, No. Special Issue on: "Business and Economic Challenges in the Post-Great Recession: Global Economy and Business at a Crossroads" (2019): pp. 1-40.

Abstract

This research provides a critical analysis of the available relevant theoretical and empirical literature regarding the key lessons about fiscal and monetary policy during the latest global crisis. The main contribution of this paper lies in offering a new redesigned framework for the key macroeconomic policies which can serve as a general guide to policymakers for designing these policies to respond to future financial and economic crises. Our critical analysis points out 15 lessons for monetary policy which the monetary authorities should take into account in the process of designing their future policies. The analysis also includes 14 lessons as a guide for governments to design their fiscal policy during future global imbalances, addressing the efficiency of fiscal policies during large-scale economic crises, the role and significance of fiscal space, the effectiveness of austerity programs, the coordination of fiscal policies on a global level, the coordination and mutual interactions with monetary policy etc.

• Item Type: MPRA Paper
• Language: English
• Keywords: global economic crisis, fiscal policy, monetary policy, redesigned macroeconomic policy framework, policy coordination, financial stability, fiscal space, economic theory, financial regulation, economic cycles, speculative booms, tax regulation, Keynesianism, macro-prudential interventions.
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B10 - General; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy ; Stabilization ; Treasury Policy; G - Financial Economics > G2 - Financial Institutions and Services

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