For Europe, the war in Ukraine is a first-order economic shock. While the direct fiscal implications of taking care of refugees, increasing military spending and strengthening energy autonomy remain limited, the impact of elevated energy and food prices on national income and its distribution is...

Most of the focus of recent stabilization policy research and practice has been on monetary rather than fiscal policy. This paper explores how, given the limits on monetary policy, fiscal policy could play a larger role. It explores the use of quasi-automatic stabilizers, i.e. changes in taxes...