Five Fundamental Changes for U.S. Fiscal Policy
Strengthened automatic fiscal stabilizers would enable fiscal stimulus to arrive in a more predictable and efficient manner.
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Strengthened automatic fiscal stabilizers would enable fiscal stimulus to arrive in a more predictable and efficient manner.
The more important question for fiscal policy is what happens when monetary policy normalizes.
Well-designed fiscal policy should help the hardest-hit and most vulnerable families.
Fiscal policy that boosts productivity is the best offense against future inflation.
Inflation’s legacy of higher real interest rates poses a significant danger to the federal budget.
Financing the debt will become more burdensome now that interest rates have returned to their pre-pandemic levels.
High inflation breeds instability, raising the risk of both higher interest rates and recession.
We can’t return to the low-inflation, low-interest rate world; we can only go forward through the wormhole the pandemic opened.
Inflation and interest rates will have important impacts on the long-term federal budget outlook.
Debt will continue to accumulate unless reforms are undertaken.