I have a new column:
Are Economists Ready for Income Redistribution?: When the Great Recession hit and it became clear that monetary policy alone would not be enough to prevent a severe, prolonged downturn, fiscal policy measures – a combination of tax cuts and new spending – were used to try to limit the damage to the economy. Unfortunately, macroeconomic research on fiscal policy was all but absent from the macroeconomics literature and, for the most part, policymakers were operating in the dark, basing decisions on what they believed to be true rather than on solid theoretical and empirical evidence.
Fiscal policy will be needed again in the future, either in a severe downturn or perhaps to address the problem of growing inequality, and macroeconomists must do a better job of providing the advice that policymakers need to make informed fiscal policy decisions. ...
The question of redistribution is coming, and we need to be ready when it does.