What do Economists really think about Stimulus Policies?
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There is widespread disagreement over the usefulness of so-called stimulus policies. Demand side economists assert that fiscal stimulus (Federal spending increases and tax cuts) can stimulate employment and improve economic growth. Demand Side economists also think that countercyclical monetary policy can stabilize the economy. That is, Federal Reserve officials may stimulate employment, counteract recessions, with inflation- by cutting interest rates and expanding the money supply rapidly.
What do Economists really think about Stimulus Policies?
What do Economists really think about…
What do Economists really think about Stimulus Policies?
There is widespread disagreement over the usefulness of so-called stimulus policies. Demand side economists assert that fiscal stimulus (Federal spending increases and tax cuts) can stimulate employment and improve economic growth. Demand Side economists also think that countercyclical monetary policy can stabilize the economy. That is, Federal Reserve officials may stimulate employment, counteract recessions, with inflation- by cutting interest rates and expanding the money supply rapidly.