Article in Journal
Monetary and fiscal policy in the economic crisis
Gerhard Illing
ifo Institut für Wirtschaftsforschung, München, 2010
ifo Schnelldienst, 2010, 63, Nr. 07, 10-16
ifo Institut für Wirtschaftsforschung, München, 2010
ifo Schnelldienst, 2010, 63, Nr. 07, 10-16
![](https://www.ifo.de/DocImg/ifosd_2010_7_2.jpg?c=1689236942)
Gerhard Illing, University of Munich, analyses monetary and fiscal policy in the economic crisis. The key problem is the conflict between price and financial-market stability: The fragile economic situation requires low interest rates; low interest rates, however, encourage the actors on the financial markets to engage in risky carry trades. For this reason, monetary policies should be decoupled from matters of finance stability.
JEL Classification: G100,H310
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Journal (Complete Issue)
ifo Schnelldienst 7/2010
ifo Institut für Wirtschaftsforschung, München, 2010