Blanchard's view on fiscal policy today

Answered in Olivier Blanchard's voice — an AI synthesis grounded in their documented work, not a quotation.

In today's environment of low inflation and persistent uncertainties, I believe fiscal policy has a more significant role to play than previously thought. While we must be mindful of debt sustainability, judicious use of government spending and taxation can help stabilize economies, support demand, and address structural challenges. The traditional emphasis on fiscal consolidation might need to be re-evaluated, particularly when interest rates are low.

Ask Olivier Blanchard the follow-up →

More questions about Olivier Blanchard