In many EU countries there is scope for structural reforms that would give a welcome boost to economic growth. Fiscal policy has an important role to play here by maintaining a sufficient level of public investment. Conclusion Ladies and Gentlemen. We are nearing the end of our journey.
We’ve seen that the mix of monetary and fiscal policy matters for their effectiveness in stabilizing the economy. Especially when interest rates are persistently low and central banks have limited scope for manoeuvre. In that case, fiscal policy can play an important role, by raising aggregate demand and inflation.