Can Trump do a Reagan? We have to wait for further details of his tax plan and see what survives Congress. However, we have to point out that there are some important historical differences which makes a repeat of the Reagan years much less likely. And this is even if you believe that tax cuts […]
Entries Tagged as 'Fiscal policy'
April 29th, 2017 · Comments Off on Will Trump Be The Next Ronald Reagan?
April 29th, 2017 · Comments Off on The Limits Of Free Money
Investors have been much more savvy about how economies behave under excess savings than many policy makers and observers. While investors piled on and made a killing, many policy makers have overly worried about the risks of accelerating inflation and the state of public finances. That doesn’t mean the near free money that a savings […]
April 29th, 2017 · Comments Off on Boom Time For Liberals
The existence of excess savings over investment produces an economy that works differently. It basically enables the public sector to increase spending for free. This is most visible in the deleveraging stage after the burst of an asset bubble, where policy vice becomes virtue and public releveraging needs to compensate private deleveraging. But some of […]
December 1st, 2016 · Comments Off on Build It And They Will Come
November 19th, 2016 · Comments Off on A Fiscal Trump Blitz!
May 16th, 2016 · Comments Off on The Stimulus Debate Still Rages, 5 Years On
Tags: Fiscal policy
June 16th, 2013 · Comments Off on Self-defeating austerity?
Their argument is that in the current environment of near-zero interest rates, fiscal deficits are unusually cheap to finance and monetary policy is not going to move to offset much (if any) of the effects of fiscal policy on the economy. Under these conditions, it is indeed possible that austerity today may reduce future tax […]
June 15th, 2013 · Comments Off on No economic growth in the Netherlands for seven years
Top economists Rick van der Ploeg en former minister Willem Vermeend argue that the Netherlands hasn’t grown in seven years and this is unprecedented. They blame the 46 billion euro in austerity and the lack of any structural reforms to increase growth. With 8 billion more planned austerity measures planned, the prognosticated 1% growth for […]
June 14th, 2013 · Comments Off on BBC News – IMF: US budget cuts ‘ill-designed’
IMF: US budget cuts ‘ill-designed’ The International Monetary Fund (IMF) has urged the US to repeal the huge federal budget cuts introduced this year, denouncing them as “excessively rapid and ill-designed”. via BBC News – IMF: US budget cuts ‘ill-designed’.
Tags: Fiscal policy
June 6th, 2013 · Comments Off on The Austerity Deniers – Seeking Alpha
At heart, the Keynesian analysis is remarkably simple. The private sector suffered large losses in wealth due to the housing crash. As a result, it reduced borrowing and spending and increased savings (or were forced to do this by creditors). The problem is that on the level of the economy as a whole, where my […]