Federal Fiscal Stabilization Program Needed to Prevent Severe State and Local Budget Shortfalls from Deepening Covid-19 Recession

Related publications

• Working Paper No. 1064 December 06, 2024

  Seismic Shifts in Economic Theory and Policy from the Bernanke Doctrine to Modern Money Theory

  Pavlina R. Tcherneva, and Éric Tymoigne
  Abstract

  Originally issued as EDI Working Paper No. 08, 2022  This paper evaluates the relationship between monetary and fiscal policy and the relative effectiveness of macroeconomic stabilization through the lens of Modern Money Theory (MMT). We articulate previously-neglected aspects of monetary sovereignty to offer a new interpretation of the Bernanke Doctrine that emerged in the wake of […]

  Download Working Paper No. 1064 PDF (947.82 KB)
• Working Paper No. 1059 November 26, 2024

  Three Lessons from Government Spending and the Post-Pandemic Recovery

  Pavlina R. Tcherneva
  Abstract

  Originally issued as EDI Working Paper No. 01, 2021 The central lesson of the COVID-19 fiscal response is that money is not scarce. Without delay, governments around the world appropriated budgets that dwarfed any other postwar crisis policy. In 2020, Japan passed a stimulus package equal to 54.8 percent of GDP, while in the U.S., […]

  Download Working Paper No. 1059 PDF (664.26 KB)
• Policy Notes November 04, 2024

  Inflation

  Edward Lane
  Abstract

  Edward Lane surveys some of the main potential contributors to the recent period of elevated inflation rates in the US economy—focusing on supply disruptions, inflation-adjusted consumer spending, and consumer spending attributable to price markups—­and outlines prominent proposals being made by the 2024 presidential candidates that may have an impact on inflation.

  Download Policy Note 2024/2 PDF (562.43 KB)