Just as inflation eases and more economists bet on a soft landing for the U.S. economy, a new risk is emerging, a policy push and pull. The divide between fiscal and monetary policy is increasingly ...

It is no secret that we have been fighting inflation that reached a 40-year high and the Federal Reserve Bank has embarked on a historic interest rate increase to combat inflation. Not only have they ...

This article discusses the big divergence between U.S. fiscal policy and U.S. monetary policy over the past year, and how that impacts various parts of the economy differently. It also takes a look at ...

Jim Caron, Chief Investment Officer of Cross-Asset Solutions at Morgan Stanley Investment Management, Sandip Bhagat, Chief Investment Officer of Whittier Trust, and Brian Joyce, Managing Director on ...

Mark Crosby does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their ...

Government support was vital to help people and firms survive pandemic lockdowns and support the economic recovery. But where inflation is high and persistent, across-the-board fiscal support is not ...

The current monetary-fiscal framework for big economies was devised for a world of low inflation, small central bank balance sheets and modest public debt. Fiscal policy would seek to keep debt on a ...

We study optimal fiscal policies in a small monetary union country. The government uses nominal nonstate-contingent debt and distortionary labour taxes to finance exogenous spending. Price levels ...

Canada’s economy is expected to dodge a potential recession this year, after grinding to a halt in the first half of 2025. That’s according to economists calling for tepid growth amid persistent ...