Rediscovering Fiscal Policy at the G7 (Jeffrey Frankel, Project-Syndicate)

As G7 leaders convene in Ise-Shima, Japan, the global economy’s fragility is a top concern. But instead of focusing on currency wars, the leaders of the major developed economies should be discussing fiscal policy, which under current conditions would be a more powerful tool than monetary policy for boosting economic activity. After all, today, unlike in normal times, the effects of fiscal policy would not be limited by too-high interest rates, inadequate private demand, strict capacity constraints, or excessive inflation

https://www.project-syndicate.org/commentary/focus-on-fiscal-policy-at-g7-by-jeffrey-frankel-2016-05