Abstract

What started as a sub-prime mortgage crisis in the US in 2007 snowballed into global recession soon after. It has turned itself into an economic crisis, if not a sociopolitical one. While the period covering 2014–19 was one of return to the growth trajectory, albeit of the new normal variety, there were various headwinds affecting growth—the US-China trade war, initial confusing signals of Brexit finally culminating in the UK’s exit from the European Union—to name a few. In 2020, the world witnessed the emergence of the COVID-19 pandemic that culminated in a once-in-a-century type of human tragedy and a return to more aggressive fiscal and monetary stimuli. This book looks at the impact of the global crisis on fiscal positions and fiscal implications of the measures undertaken to deal with the situation. The authors explore cross-country experiences with special focus on the euro area economies and India. Analysing the issues relating to the interaction between monetary, fiscal, and financial policies, with emphasis on public debt management, sovereign debt restructuring, taxation, and regulation of the financial sector and sub-national finance, they present the emerging challenges. Recognizing the inter-linkages between monetary, financial, and fiscal policies against the backdrop of the global crisis, this book offers an understanding of possible institutional arrangements for the future.