Central Banking

The role of fiscal policy in crisis situations

ARTICLE - Flemming Larsen, Director of the IMF Office in Europe, has responded to Joseph Stiglitz's in Les Echos on June 3, 'L'actualite de Keynes'. Larsen counters criticisms that the IMF imposes hardship on crisis-stricken countries, as they only point to output contractions that inevitably result from crises. He argues IMF support has helped avoid worse recessions and has stimulated renewed growth more quickly.

The Role of Fiscal Policy in Crisis Situations

Prof. Stiglitz's solution to the

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