Title: Lessons learned from the global recession - redesigned framework of key macroeconomic policies

Authors: Borce Trenovski; Biljana Tashevska

Addresses: Faculty of Economics, Ss. Cyril and Methodius University, Blvd. Goce Delcev 9V, 1000 Skopje, Republic of Macedonia ' Faculty of Economics, Ss. Cyril and Methodius University, Blvd. Goce Delcev 9V, 1000 Skopje, Republic of Macedonia

Abstract: This research provides a critical analysis of the available relevant theoretical and empirical literature regarding the key lessons about fiscal and monetary policy during the latest global crisis. The main contribution of this paper lies in offering a new redesigned framework for the key macroeconomic policies which can serve as a general guide to policymakers for designing these policies to respond to future financial and economic crises. Our critical analysis points out 14 lessons for monetary policy which the monetary authorities should take into account in the process of designing their future policies. The analysis also includes 14 lessons as a guide for governments to design their fiscal policy during future global imbalances, addressing the efficiency of fiscal policies during large-scale economic crises, the role and significance of fiscal space, the effectiveness of austerity programs, the coordination of fiscal policies on a global level, the coordination and mutual interactions with monetary policy, etc.

Keywords: global recession; fiscal policy; monetary policy; redesigned macroeconomic policy framework; policy coordination; financial stability; fiscal space; economic theory; economic cycles; speculative booms; tax regulation; Keynesianism; financial regulation; macroprudential interventions.

DOI: 10.1504/IJBG.2019.10021974

International Journal of Business and Globalisation, 2019 Vol.22 No.4, pp.468 - 489

Received: 24 Jan 2018
Accepted: 10 Feb 2018

Published online: 21 Jun 2019 *

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