The primacy of fiscal policy is the new global orthodoxy in a deflationary world

The primacy of fiscal policy is the new global orthodoxy in a deflationary world where $17 trillion of debt is trading at negative yields and central banks are deemed – rightly or wrongly – to be exhausted.

 The canonical case was spelled out in Olivier Blanchard’s prize lecture to the American Economic Association earlier this year.

 “Put bluntly, public debt may have no fiscal cost,” he concluded.

 Rarely has an academic paper of this kind gone viral so instantly

 Ambrose Evans-Pritchard Telegraph Newsletter 1 October 2019

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