Ethan Ilzetzki

Given the enormity of the short- and long-run fiscal challenges facing the US, the lack of policy detail from both presidential candidates is disappointing

In the second part of their analysis of US policy responses to the economic recession, Ethan Ilzetzki and Jonathan Pinder examine the policy efforts aimed at reducing US public debt. They argue that proposals put forward by both presidential candidates are woefully short of specifics. Given the UK’s approach to tackling government debt, this analysis provides reasons for having a clear […]

Monetary or fiscal stimulus can help only if unemployment is cyclical; otherwise, if unemployment is structural expansionary policies will lead only to inflation. Careful recent analyses indicate that unemployment is mainly cyclical in the US

Ethan Ilzetzki and Jonathan Pinder examine the US economic woes since the beginning of the recession and the policy response aimed at fighting unemployment. They find that monetary or fiscal stimulus can help only if unemployment is cyclical and that unemployment (now at 7.8%) is indeed mainly cyclical. The examination of the US experience provides valuable insight for the UK experience, […]

According to new research, low interest rates and expansionist monetary policy may temper the government’s programme of austerity

One country’s fiscal nudge is another country’s fiscal dud. In an important piece research, Ethan Ilzetzki and colleagues from the University of Maryland shine a light on the key interaction between monetary policy and fiscal stimulus. When the 2008 financial crisis hit the world, the world hit back. Policymakers around the globe responded rapidly and aggressively to the most significant […]

LSE Centre for Economic Performance – Macroeconomics and Public Finance: The worst is yet to come

A new series of Election Analyses is now available from the LSE’s Centre for Economic Performance (CEP). The series will discuss the research evidence on some of the key policy battlegrounds […]