Detail Self-Sustaining Stimulus: A Theory of Fiscal Policy   Oleh:  [s.n] Jenis: Article from Bulletin/Magazine Dalam koleksi: The Economist (http://search.proquest.com/) vol. 402 no. 8777 (Mar. 2012), page 73-74. Topik: Economic Policy; Economic Growth; Politics Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: EE29.71 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel When he was at the Treasury nearly 20 years ago Larry Summers would counsel President Bill Clinton on the merits of "stimulative austerity": cut deficits, and interest rates will fall by enough to produce stronger economic growth. Now Mr Summers is making the opposite case: stimulate growth through a bigger deficit, and the long-term debt may shrink. In a new paper* written with Brad DeLong of the University of California, Berkeley, Mr Summers, now at Harvard after a stint as Barack Obama's chief economic adviser, says that in the odd circumstances America faces today temporary stimulus "may actually be self-financing". Mr DeLong and Mr Summers are careful to say stimulus almost never pays for itself. When the economy is near full employment, deficits crowd out private spending and investment. In a recession the central bank will respond to fiscal stimulus by keeping interest rates higher than they would otherwise be. Both effects mean that in normal times the fiscal "multiplier"--the amount by which output rises for each dollar of government spending or tax cuts--is probably close to zero. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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