Posen: Fiscal Policy Is More Aspiration Than Reality

The transcript discusses the role of the IMF and the US's political context, highlighting the lack of fiscal action due to election results and budget issues. It explores fiscal policies in countries like Italy, the UK, and Brazil, and the global trend towards economic stimulus. The discussion includes the challenges of managing public and private debt, the importance of growth rates, and the resilience of economic systems. The transcript concludes by examining the flexibility of financial systems in the face of potential exogenous shocks.

What is the main reason for the lack of fiscal policy action in the US according to the discussion?

• The US has already implemented sufficient stimulus.

• The US is focusing on monetary policy instead.

• The US is experiencing a budget surplus.

• The US is waiting for election results.

Which country's fiscal policy is described as horrendous in the discussion?

• Brazil

• Germany

• United Kingdom

• Italy

What is the 'little G' referred to in the context of international economics?

• A measure of government spending

• A growth rate

• A type of fiscal policy

• A currency exchange rate

What is the main concern about the shrinking 'little G'?

• It causes currency devaluation.

• It leads to increased borrowing costs.

• It suggests a slowdown in growth.

• It indicates a rise in inflation.

What is a potential limitation of central banks in responding to exogenous shocks?

• They have exhausted their policy tools.

• They are focused on inflation control.

• They lack coordination with fiscal authorities.

• They are constrained by political pressures.