NY Fed research report- a payroll tax holiday will make the economy worse

[Skip to the end] A new analytical low for the cycle and a black mark for the NY Fed: Link Federal Reserve Bank of New York Staff Reports What Fiscal Policy Is Effective at Zero Interest Rates? Gauti B. Eggertsson Staff Report no. 402 November 2009 Abstract Tax cuts can deepen a recession if the short-term nominal interest rate is zero, according to a standard [...]