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

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

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

So early fiscal consolidation can be expansionary on balance.

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

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.

Additionally, raising interest rates would be a form of expansionary fiscal 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.

I have been arguing for four years that our business cycle problems call for more aggressively expansionary monetary and fiscal policies, and that our biggest problems would quickly melt away were such policies to be adopted.

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

Moreover, the critics object, the evidence in support of expansionary fiscal consolidations is flawed.

Its fiscal policy has been expansionary, but nowhere near the level of the US.

In each case where fiscal consolidation supposedly was expansionary, the economy grew because of some third factor.

Moreover, Brazilian fiscal policy is likely to switch from restrictive to neutral or slightly expansionary this year.

e. Special fiscal policies

Consider monetary and fiscal policies.

To rein in rising house prices and pre empt the inflationary impact of the strongly expansionary fiscal and monetary policies implemented during the global financial crisis, China s monetary authorities began to tighten financial conditions in January 2010.

Expansionary monetary policy is expected to inject liquidity into the Japanese economy until inflation hits the Bank of Japan s 2 target, while expansionary fiscal policy is expected to continue until economic recovery takes hold.

Northern European countries, which have ample room to increase wages and implement expansionary policies, must do so.

In both cases, it is claimed that further expansionary asset provision policies run the risk of igniting inflation.

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

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

But not all fiscal policies are equivalent.

One can imagine a grand bargain in Europe, with expansionary macroeconomic policies coupled with the easing of microeconomic impediments.

While expansionary policies have succeeded in ensuring a V shape recession, their medium and long term effects are worrisome.

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

In particular, expansionary monetary policies in the US (indeed, in all advanced countries) are generating high risks for emerging economies.

With the government still having room to wield expansionary monetary and or fiscal policy, the economic revival was only a matter of time.

Even if this does not trigger a crisis, it sharply narrows the government s scope for using expansionary fiscal policy to stimulate the economy.

Indeed, just a year or two ago, expansionary fiscal contraction was all the rage, and a massive research effort went into proving its existence.

Some argue that fiscal consolidation by gradual permanent reductions in spending would be expansionary for high debt countries, as occurred in some historical episodes.

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

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.

Most booms are produced by bad monetary and fiscal policies.

The United States, by contrast, has pursued expansionary and growth oriented macroeconomic policies since the 2007 2009 financial crisis, despite massive budget deficits.

Markets also welcome the fact that the Fed s hyperactive experimentation is forcing other central banks around the world to pursue more expansionary policies.

CAMBRIDGE The United States current fiscal and monetary policies are unsustainable.

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.

It argued for more expansionary macroeconomic policies to generate employment, public sector investments to serve the poor, and the establishment of social protection systems.

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

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

A common currency requires unified and centrally agreed monetary and fiscal policies.

Monetary and fiscal policies cannot be expected to turn this situation around.

BEIJING China s Central Economic Work Meeting, comprising top government decision makers, recently chose to continue the expansionary fiscal and monetary policy launched in the last quarter of 2008.