Fiscal stimulus crucial for recovery
It would be foolish to withdraw policy support until it is clear that retrenchment can take place without killing off any incipient economic recovery, new research from the Centre for Economic Policy Research (CEPR) warns.
The research notes that repeating the mistakes of the 1920s is no excuse for repeating those of the 1930s. The analysis shows that fiscal policy made little difference during the 1930s because it was not deployed on the requisite scale and not because it was ineffective. The
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