3 ms·
You should learn about the 'Sumner critic'. If monetary policy is not already allowing fiscal policy to expand then 'digging holes and filling them in' has ZER
by nickik 8y ago
You should learn about the 'Sumner critic'.
If monetary policy is not already allowing fiscal policy to expand then 'digging holes and filling them in' has ZERO impact on AD.
And if that is the case then you don't need fiscal policy at all. So no, it never makes sense to 'dig holes and fill them back in'.
- mcguire 8y ago"So no, it never makes sense to 'dig holes and fill them back in'." The CCC?