Sims on Efficacy of Fiscal Versus Monetary Policy

The video discusses the interplay between monetary and fiscal policies in addressing low inflation, particularly in Europe and Japan. It highlights the reluctance of central bankers to discuss fiscal policy's role and the need for cooperation between fiscal authorities and central banks. The conversation also touches on the challenges of shifting from monetary to fiscal policy, especially in crisis situations, and the common political tendency towards fiscal contraction instead of expansion.

Why do central bankers tend to avoid discussing fiscal policy?

What is the significance of fiscal policy in relation to central banking?

What challenges do policymakers face when transitioning from monetary policy to fiscal policy?

How does the speaker describe the relationship between inflation and fiscal policy?

What does the speaker suggest is necessary for effective inflation control?