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Fiscal Stimulus Issues.pdf

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Preview of Fiscal Stimulus Issues
🔗 Source: larrysummers.com
📊 Size: 21 KB
👤 Author: Lawrence Summers
⬇️ Downloads: 96

Summary

Fiscal stimulus is desirable due to a likely recession, with fiscal policy measures mitigating the downturn and accelerating recovery. Monetary policy has a role, but fiscal policy is faster-acting and can target innocent victims of recession. The risk of overheating the economy is low, with inflation currently at 1.9%. A stimulus package of $50-$75 billion is recommended, with a possible second tranche if economic weakness worsens. The package should be timely, targeted, and temporary, with simple measures like tax refunds or benefit enhancements, and should focus on low-income individuals and those with sharply declined incomes.

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Description

Fiscal stimulus is desirable due to a likely recession, with fiscal policy measures mitigating the downturn and accelerating recovery.

Technical Information

  • File Format: PDF
  • File Size: 21 KB
  • Pages: 4
  • Language: EN
  • Author: Lawrence Summers
  • Total Downloads: 96
  • Last Updated: 4 hours ago

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