Category Archives: Federal Reserve

The Implications of a Textbook Analysis of Macro Stabilization via Discretionary Fiscal Policy

From Reuters:

If Bush and Congress are to act at all, they will have to move quickly to have any impact, says Alan Auerbach, an economics professor at the University of California, Berkeley, who has done research on the effects of fiscal stimulus.

“Timing is extremely important,” he says. “Recessions typically last less than a year, so unless you can be pretty quick, it’s not worth doing.”

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