Expert Discussion ONLINE
MACROECONOMIC POLICY CHALLENGES IN THE MODERN WORLD
Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy, Professor of Economics, Harvard University
The global financial crisis of 2007 - 2008 caused major structural changes in macroeconomic policy in virtually all countries. In the 10 years after the crisis, both budgetary and monetary policies, primarily, in developed countries, were often called “non-traditional,” indicating that at some point states would return to “traditional” policies. The 2020 pandemic and the reaction of the authorities to it, now - of almost all countries, regardless of the level of development, have become the reason that “non-traditional” policy has become a common practice. However, according to many experts, modern macroeconomic policy carries serious risks in the medium term, and may, among other things, cause a new global financial crisis.
Issues for discussion:
• Main risks of the current macroeconomic policy in the medium term
• Problems of coordination of monetary and fiscal policy in the conditions of near-zero growth and inflation
• Is a return to “traditional” macroeconomic policy possible in the medium term?
• Is it realistic to launch sustainable economic growth through public policy measures in the medium term?
• Are there any possible scenarios for “exit” from the current design of monetary and fiscal policy?
• Should we expect a new global financial crisis?