Jan 30, 2008

Paul Samuelson on the shortcomings of fiscal policy

In the early stages of the Keynesian revolution, macroeconomists emphasized fiscal policy as the most powerful and balanced remedy for demand management. Gradually, shortcomings of fiscal policy became apparent. The shortcomings stem from timing, macroeconomic theory, and the deficit itself.

— Paul Samuelson, Economics, 15th edition (1995)

No comments: