Crises are typically unpredictable and uncontrollable due to the vast number of factors involved, which prompts the necessity for improved crisis stabilization policy.
This book challenges these policies by arguing that stabilization policy has important consequences for long-term growth and has often been implemented with adverse consequences.
The earlier part of his distinguished career he specialized in the fields of economic development, money and banking, and macroeconomic stabilization policy.
Fiscal stabilization policy should focus on prudent measures to broaden the tax base and reduce revenue leakage as higher taxes constitute a withdrawal from the economy.
Another factor to note is that a price stabilization policy could in fact inflict a higher fee on petroleum transportation fuels than a likely cap-and-trade policy would provide.
