How are monetary and fiscal policy, the main macroeconomic tools used to steer our economies, able to address the unprecedented challenges presented by the events of recent years, such as COVID-19, war on Ukraine, or increase in energy prices? How do these policies of governments and central banks interact? What does it mean for us now and in the future? In Talking Economics, Katarína Stehlíková and Jaroslav Borovička, a CERGE-EI MA alumnus, give us a macroeconomic look at the current economy.

“One good thing to remember about both monetary and fiscal policy is that both are long-term games. When the central bank applies a policy, it builds reputation. Reputation is important for a stable environment and credible policies. The same thing is true about fiscal policy. Stable environment on the fiscal side is equally important for investments decisions, for example, in regards to the energy crisis. So, don’t get lost in the day-to-day changes and think about the long-term outlook,” says Jaroslav.

Jaroslav Borovička is a CERGE-EI MA in Economics alumnus. He holds a PhD degree from the University of Chicago and works as an Associate Professor at the Department of Economics, New York University in the United States.

You can listen to Talking Economics on Spotify, Google Podcasts, Apple Podcasts, and YouTube.