Macro heresy: Rethinking policy options to avoid a lost decade
Richard Wood, 19 December 2012
Five years after the subprime bubble burst, the self-correcting nature of business cycles is being questioned and, subsequently, orthodox macroeconomic policy is starting to be challenged. This column introduces a radical rethink of options open to macroeconomic policymakers, suggesting that in order to simultaneously achieve economic stimulus without increasing debt, new money creation should be used to directly finance on-going budget deficits.
Full Article: Macro heresy: Rethinking policy options to avoid a lost decade
