Mario Seccareccia describes a “new consensus” on macro policy which says that responsibility should lie with monetary policy, except when rates hit the zero lower bound. Then some fiscal stimulus makes sense until private sector demand revives. As automatic stabilizers have been scaled back, there’s more need for discretionary response. He recommends that more attention be given to Keynes’ proposal for a national investment bank.
Mario Seccareccia, Professor of Economics at the University of Ottawa, speaking in the panel "Getting Back on Track: Macroeconomic Management After a Financial Crisis" at the Bretton Woods Conference on April 9, 2011.