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Saturday, September 04, 2010

The Fed Can Help, and Should Help, but Fiscal Policy Can Do Even More

The Fed has been under considerable pressure recently by those, me among them, who believe the Fed should use quantitative easing to lower long-term interest rates. 

However, a temporary investment tax credit can provide the same incentives for business investment as a Fed induced fall in the long term interest rate, and then some, and that's not the only thing fiscal policy can do.

The Fed can help, and should help, but fiscal policy can do even more.

    Posted by on Saturday, September 4, 2010 at 12:07 PM in Economics, Fiscal Policy, Monetary Policy, Taxes | Permalink  Comments (68)


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