This is Bill Goode's Typepad Profile.
Join Typepad and start following Bill Goode's activity
Join Now!
Already a member? Sign In
Bill Goode
Recent Activity
Tax policy and government regulation do impact domestic growth, but the fear of the same also has a beneficial or detrimental effect, as well. The fiscal multiplier produced by government stimulus will change depending on what the stimulus is spent on (maintaining high employment in the public sector vs. improving unemployment in the private sector) as well as, what other uncertainties exist in the minds of the consumer (increasing savings vs. consumption). Monitary policy at this zero lower bound level has obvious limitations. Fiscal Policy probably would have a greater impact; however, the type of legislation that private industry infers or fears from the political party in power and how the government spends any stimulus (private or public)is very difficult to put into a mathematical model; thus making the prediction of the benefit of such a fiscal policy less reliable.
1 reply
Bill Goode is now following The Typepad Team
Jan 21, 2014