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There's another pole to reductio towards, though -- governmental spending increases without commensurate increases in taxation. I don't know enough macro to kno
by repsilat 10y ago
There's another pole to reductio towards, though -- governmental spending increases without commensurate increases in taxation. I don't know enough macro to know what the resulting inflation would look like, what would happen to interest rates or exports or quality of life etc etc... No doubt mainstream economists would be aghast at the thought (it isn't a mainstream idea, after all -- our recent stimulus has been monetary, not fiscal, and it's only meant to be a short-term thing) so it's probably not such a crash hot idea either.