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Alan S. Blinder on Monetary and Fiscal Policy: Rowing with Both Oars

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CHAPTER

The Biggest Tax Cut Ever

The Recovery Act was criticized both for being too little and too big. After that, starting in the years 2011, fiscal policy in the U.S. turned notably contractionary. This is clear that one of the reasons for the slow recovery was fiscal contraction when they shouldn't have been doing that.

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