When an economy faces a downturn, one should engage in expansionary fiscal policies.

The second case for expansionary fiscal contraction is subtler.

So early fiscal consolidation can be expansionary on balance.

In particular, expansionary monetary and fiscal policies which are helpful in the short term must be accompanied by fundamental structural reforms.

To offset the negative impact of private sector deleveraging on growth, the US government has maintained expansionary fiscal and monetary policies.

Europe is mired in its oxymoronic commitment to expansionary fiscal austerity.

Some will say that he should get G 20 countries to coordinate an orderly exit from their expansionary monetary and fiscal policies.

Countries running surpluses must adopt expansionary policies and appreciate their currencies.

Today, fiscal policy remains too expansionary in virtually every Latin American country.

Consider monetary and fiscal policies.

Keynes proposed clear prescriptions for hard economic times expansionary monetary and fiscal policy.

Countries with a stronger fiscal position (that is, smaller structural deficits) should be encouraged to adopt more expansionary policies in order to contribute to lifting overall demand.

Meanwhile, India, constrained by a high fiscal deficit and persistent inflationary pressure, has less scope for expansionary policies and faces significant challenges in pursuing credible structural reform.

But not all fiscal policies are equivalent.

But not all fiscal policies are equivalent.

Other factors included defective financial regulations, expansionary fiscal policies in countries like the United States, Britain, and Ireland, a lack of appropriate macro prudential regulations, and so on.

But only governments with access to market finance can use expansionary fiscal policy to boost demand.

Coordination of fiscal policies indeed, can be counterproductive.

monetary and fiscal policies that promote sustainable growth

Would it be compatible with autonomous national fiscal policies?

With a large output gap and low inflationary pressure, expansionary policies show great potential for reviving economic activity.

They have converging economies and coordinated monetary and fiscal policies.

Only the Baltic countries seem able to maintain sound fiscal policies.

This downward pressure on prices has allowed Western central banks to follow expansionary monetary policies, underpinning higher employment and growth.

The early 2012 upturn in US economic activity still owes a lot to extraordinarily expansionary monetary policy and unsustainable fiscal deficits.

To combat the effect of high oil prices, consuming countries adopt expansionary economic policies, lowering interest rates and increasing government spending.

To combat the effect of high oil prices, consuming countries adopt expansionary economic policies, lowering interest rates and increasing government spending.

The impact was greater in countries that had a history of structural fiscal problems, maintained loose fiscal policies, and ignored fiscal reforms during the boom years.

Given that the German economy s output gap remains negative, the government should be implementing expansionary fiscal policy that targets the country s infrastructure weaknesses.

For example, many central banks followed the Federal Reserve s excessively loose monetary policy. Other factors included defective financial regulations, expansionary fiscal policies in countries like the United States, Britain, and Ireland, a lack of appropriate macro prudential regulations, and so on.

Having satisfied the Maastricht criteria, fiscal policies have been geared to putting on brakes.

Undetected imbalances and systemic risk make fiscal policies seem prudent when they are not.

For another, it would serve as a financing mechanism for coordinated countercyclical fiscal policies.

In the United States, individual states that follow unsound fiscal policies face a penalty.

That, plus the gloomy international outlook and a fiscal policy that will have to become less expansionary after the election, will slow the economy down.

More importantly, countries could use similar instruments, as part of a true international regulatory regime, to increase the effectiveness of their expansionary monetary policies.

Indeed, it may be one reason why highly expansionary policies by the Fed and other central banks have taken so long to generate growth.

First, consumption has to give way smoothly to investment, as past excess capacity is worked off and as expansionary policies in industrial countries normalize.

All of this is happening in the midst of extremely expansionary monetary policies and near zero interest rates, except in the countries facing immediate crisis.

But an important insight from history is that unsustainable fiscal policies are more likely to result in defaults when fiscal problems cannot be inflated away.

Because the Fed has clearly communicated that it will move gradually toward less expansionary policies, its credibility would be damaged if it did not follow through.

The Bush Administration's fiscal policies, combined with the bursting of the US financial bubble of the late 1990s, have pushed America onto an unstable fiscal trajectory.

Keynesian remedies (now being tardily applied) and an expansionary fiscal policy have not been able to jump start the Japanese economy and bring about a return of optimism.

Any attempt to use expansionary government policies to drive unemployment below a certain level, they demonstrated, would fuel inflationary expectations and undermine both economic growth and employment.

Unemployment in the US is high, while fiscal and monetary policies have been stretched to their limits.