Shall We Target Inflation with Fiscal Policy?
May 16, 2012 at 12:18 PM EDT
Most Keynesians seem to think that fiscal policy influences AD and inflation, even when rates aren’t stuck at the zero bound. This recent article from The Economist illustrates the conventional Keynesian view: Even the lower estimates could easily be enough to tip the economy back into recession. Mr Greenlaw says the closest precedent was in [...]