Fiscal and monetary cocktails – optimal mix at the lower bound?

For over a decade, conventional monetary policy has remained at the effective lower bound. Yet, after many years of unconventional monetary stimulus alongside fiscal consolidation, hopes that inflation would eventually recover to rates closer to 2% have consistently fallen wide of the mark. These conditions have prompted significant debate around what the optimal fiscal and monetary policy mix should be in the context of the recovery. What are the lessons from recovery of the 2008 GFC and ensuing recessions? Does ‘fiscal’ need to be brought back in to help with macroeconomic stabilization - or should monetary policy be left with all the counter-cyclical heavy lifting? Do we need more coordination between central banks and fiscal authorities? Are things like ‘helicopter money’ a viable solution? Find out more at this timely and relevant event.