To Spend or Not to Spend
(New York Times) — Should nations embrace austerity to atone for their past sins of overspending, or will such behavior plunge the world into another Great Depression? We have little hard evidence on whether the benefit of stimulus spending covers its costs, but ignorance doesn’t make the case for inaction. A better approach is to limit any second stimulus to tax-and-transfer-related interventions that have the least potential for widespread waste.
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