Fiscal Forward Guidance

AXA
By December 1, 2020 11:12

Fiscal Forward Guidance

We explore this week the possible “exit strategy” from the ongoing extraordinary fiscal and monetary stimulus. Drawing on Olivier Blanchard’ recent research, we argue that the current EU fiscal surveillance framework may …

Key points

  • The current EU fiscal surveillance framework is probably ill-suited to guide governments through their “exit strategy” from the ongoing extraordinary policy stimulus. We explore some solutions.
  • For all the drama, even with a Free Trade Agreement agreed in the next few days, the UK will have chosen one of the most aggressive options which were available post-Brexit to shape its relationship with the EU. 

AXA
By December 1, 2020 11:12

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