Mileinomics starts to have an impact
- Fathom’s recently published Global Outlook, Summer 2024 revisited Leeper’s (1991) work on the interaction between monetary and fiscal policies, showing that the US is currently active for both (read more here)
- One country that has historically been no stranger to such a policy mix is Argentina, with the high rates of inflation and economic volatility to show for it
- But now a new wind is blowing through, with Javier Milei’s government targeting five percentage points of GDP in fiscal consolidation this year and committed it seems to a more passive fiscal policy approach over the medium term
