4 ms·
There was a $300/person tax rebate during the 2008 recession in the USA. So it's not that far fetched an idea. I wonder how these kind of direct-to-consumer pa
by maliker 7y ago
There was a $300/person tax rebate during the 2008 recession in the USA. So it's not that far fetched an idea.
I wonder how these kind of direct-to-consumer payments compare with traditional monetary policy (cutting interest rates, securities purchases) in terms of impacts.
- strunz 7y agoWasn;t it determined that no one actually spent that money and just paid of debt instead?
- jfengel 7y agoNot no one, but few. That's what the National Bureau of Economic Research concluded: https://www.nber.org/papers/w15421 https://www.nber.org/papers/w15421 "Only about one-fifth of respondents in the Reuters/University of Michigan survey report that the 2008 tax rebates led them to mostly increase spending, while over half said it would lead them to mostly pay off debt... [T]he results imply that the rebates provided only a modest stimulus to spending per dollar of rebate."