Edited by Enrique Alberola, Adviser, Banco de España, Spain; former Chief of the BIS Americas Office, Mexico

‘This book offers a timely examination of the evolving landscape of fiscal policy in the 21st century. It identifies the intricacies of how major crises, including the Global Financial Crisis (GFC) and the COVID-19 pandemic, have catalyzed a re-evaluation of the role of fiscal policy over the last two decades. [...] Through a meticulous analysis that bridges historical economic paradigms with contemporary challenges, Alberola, and his team of contributors, delve into the complex dynamics of fiscal strategies that increasingly need to aim at mitigating economic disparities and stabilizing global markets.’

• Contents:Foreword xviPablo Hernández de CosPreface and acknowledgments xviii1 Introduction: the transformation of fiscal policy in theturbulent era 1Enrique AlberolaPART I FISCAL RESOURCES AND THE FISCAL SPACE2 Debt explosions and reductions in emerging anddeveloping countries: drivers and implications 22Ugo Panizza and Andrew Powell3 Sovereign debt restructuring and the missing internationalcoordination 39Aitor Erce and Mattia Picarelli4 Low interest rates, monetary policy and the close linkswith fiscal policy 57Enrique Alberola5 A macroeconomic perspective on the challenges of taxingmultinationals 73Shafik HebousPART II USES OF FISCAL POLICY: THESTABILIZATION ROLE OF FISCAL POLICY6 The effectiveness of fiscal policy 86Javier Andrés7 Fiscal rules: challenges and reform opportunities foremerging and developing economies 103Martín Ardanaz, Eduardo Cavallo and Alejandro Izquierdo8 Fiscal governance in the European Union 120Niels Thygesen9 Fiscal policy and financial stability: revisiting the nexus 138Claudio Borio, Marc Farag and Fabrizio ZampolliPART III USES OF FISCAL POLICY: REDISTRIBUTION,ALLOCATION AND EMERGING DEMANDS10 Fiscal policy and income redistribution in the turbulent era 154Benedict Clements, Sanjeev Gupta and João Tovar Jalles11 Redistribution, automatic stabilizers and public debt 167Enisse Kharroubi, Benoit Mojon and Luiz Pereira da Silva12 Meeting the economic challenges of a greying world 184Aida Caldera and Dorothée Rouzet13 Climate transition: implications for fiscal policies 199Lorenzo ForniPART IV CONCLUSION14 The future of fiscal policy 210Vitor Gaspar, Sandra Lizarazo and Adrián Peralta-Alva

Edited by Enrique Alberola, Adviser, Banco de España, Spain; former Chief of the BIS Americas Office, Mexico

‘This book offers a timely examination of the evolving landscape of fiscal policy in the 21st century. It identifies the intricacies of how major crises, including the Global Financial Crisis (GFC) and the COVID-19 pandemic, have catalyzed a re-evaluation of the role of fiscal policy over the last two decades. [...] Through a meticulous analysis that bridges historical economic paradigms with contemporary challenges, Alberola, and his team of contributors, delve into the complex dynamics of fiscal strategies that increasingly need to aim at mitigating economic disparities and stabilizing global markets.’

• Contents:Foreword xviPablo Hernández de CosPreface and acknowledgments xviii1 Introduction: the transformation of fiscal policy in theturbulent era 1Enrique AlberolaPART I FISCAL RESOURCES AND THE FISCAL SPACE2 Debt explosions and reductions in emerging anddeveloping countries: drivers and implications 22Ugo Panizza and Andrew Powell3 Sovereign debt restructuring and the missing internationalcoordination 39Aitor Erce and Mattia Picarelli4 Low interest rates, monetary policy and the close linkswith fiscal policy 57Enrique Alberola5 A macroeconomic perspective on the challenges of taxingmultinationals 73Shafik HebousPART II USES OF FISCAL POLICY: THESTABILIZATION ROLE OF FISCAL POLICY6 The effectiveness of fiscal policy 86Javier Andrés7 Fiscal rules: challenges and reform opportunities foremerging and developing economies 103Martín Ardanaz, Eduardo Cavallo and Alejandro Izquierdo8 Fiscal governance in the European Union 120Niels Thygesen9 Fiscal policy and financial stability: revisiting the nexus 138Claudio Borio, Marc Farag and Fabrizio ZampolliPART III USES OF FISCAL POLICY: REDISTRIBUTION,ALLOCATION AND EMERGING DEMANDS10 Fiscal policy and income redistribution in the turbulent era 154Benedict Clements, Sanjeev Gupta and João Tovar Jalles11 Redistribution, automatic stabilizers and public debt 167Enisse Kharroubi, Benoit Mojon and Luiz Pereira da Silva12 Meeting the economic challenges of a greying world 184Aida Caldera and Dorothée Rouzet13 Climate transition: implications for fiscal policies 199Lorenzo ForniPART IV CONCLUSION14 The future of fiscal policy 210Vitor Gaspar, Sandra Lizarazo and Adrián Peralta-Alva

Edited by Enrique Alberola, Adviser, Banco de España, Spain; former Chief of the BIS Americas Office, Mexico

‘This book offers a timely examination of the evolving landscape of fiscal policy in the 21st century. It identifies the intricacies of how major crises, including the Global Financial Crisis (GFC) and the COVID-19 pandemic, have catalyzed a re-evaluation of the role of fiscal policy over the last two decades. [...] Through a meticulous analysis that bridges historical economic paradigms with contemporary challenges, Alberola, and his team of contributors, delve into the complex dynamics of fiscal strategies that increasingly need to aim at mitigating economic disparities and stabilizing global markets.’

• Contents:Foreword xviPablo Hernández de CosPreface and acknowledgments xviii1 Introduction: the transformation of fiscal policy in theturbulent era 1Enrique AlberolaPART I FISCAL RESOURCES AND THE FISCAL SPACE2 Debt explosions and reductions in emerging anddeveloping countries: drivers and implications 22Ugo Panizza and Andrew Powell3 Sovereign debt restructuring and the missing internationalcoordination 39Aitor Erce and Mattia Picarelli4 Low interest rates, monetary policy and the close linkswith fiscal policy 57Enrique Alberola5 A macroeconomic perspective on the challenges of taxingmultinationals 73Shafik HebousPART II USES OF FISCAL POLICY: THESTABILIZATION ROLE OF FISCAL POLICY6 The effectiveness of fiscal policy 86Javier Andrés7 Fiscal rules: challenges and reform opportunities foremerging and developing economies 103Martín Ardanaz, Eduardo Cavallo and Alejandro Izquierdo8 Fiscal governance in the European Union 120Niels Thygesen9 Fiscal policy and financial stability: revisiting the nexus 138Claudio Borio, Marc Farag and Fabrizio ZampolliPART III USES OF FISCAL POLICY: REDISTRIBUTION,ALLOCATION AND EMERGING DEMANDS10 Fiscal policy and income redistribution in the turbulent era 154Benedict Clements, Sanjeev Gupta and João Tovar Jalles11 Redistribution, automatic stabilizers and public debt 167Enisse Kharroubi, Benoit Mojon and Luiz Pereira da Silva12 Meeting the economic challenges of a greying world 184Aida Caldera and Dorothée Rouzet13 Climate transition: implications for fiscal policies 199Lorenzo ForniPART IV CONCLUSION14 The future of fiscal policy 210Vitor Gaspar, Sandra Lizarazo and Adrián Peralta-Alva