Should-Read: N. Gregory Mankiw and Lawrence H. Summers (1984): Are Tax Cuts Really Expansionary?

Should-Read: N. Gregory Mankiw and Lawrence H. Summers (1984): Are Tax Cuts Really Expansionary?: “If consumer spending generates more money demand than other components of GNP…

…then tax cuts may… increasing the demand for money, [may] depress aggregate demand. We examine a variety of evidence and conclude that the necessary condition for contractionary tax cuts is probably satisfied for the U.S. economy.

Mankiw, N. Gregory Mankiw and Lawrence H. Summers. “Money Demand and the Effects of Fiscal Policies,” Journal of Money, Credit and Banking, Vol. 18 (November 1986): 415-429.

January 20, 2017

AUTHORS:

Brad DeLong
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