Cover

CONTENTS

EXECUTIVE SUMMARY

I. Introduction

II. Elements of the Comprehensive, Consistent, and Coordinated Approach

II.A. Fiscal Policy

II.B. Monetary Policy

II.C. Synergies Between Demand Management and Structural Policies

II.D. Financial Sector Policy

III. Illustrating Comprehensive, Consistent, and Coordinated Policies

III.A. Examples of Canada and Japan

III.B. International Policy Coordination: The Positive Spillovers

IV. Policy Conclusions

References

Boxes

Box 1. The Comprehensive, Consistent, and Comprehensive Approach in a Nutshell

Figures

Figure 1. Measures of the Equilibrium U.S. Real Interest Rate

Figure 2. 10-Year Bond Yields in Selected Major Economies

Figure 3. Illustrative Effects of a Permanent Increase in Government Investment

Figure 4. Inflation Expectations Better Anchored in IFT Economies

Figure 5. Evolution of Potential Output Growth and Its Components in Advanced Economies

Figure 6. GDP Effects of Major Past Product Market Reforms

Figure 7. Role of Fiscal Policy in Determining the Effects of Employment Protection Legislation and Unemployment Benefit Reforms

Figure 8. Key Macroeconomic Variables for Canada and Japan

Tables

Table 1. Illustrative Discretionary Fiscal Multipliers with Monetary Policy Accommodation

Table 2. Estimates of the Effects of a Coordinated Fiscal Stimulus (Part I)

Table 3. Estimates of the Effects of a Coordinated Fiscal Stimulus (Part II)