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Tax Cuts x Spending Increased (Mankiw)

“Tax Cuts Might Accomplish What Spending Hasn´t”, by Gregory Mankiw, was published on The New York Times. He comments: “These studies point toward tax policy as the best fiscal tool to combat recession, particularly tax changes that influence incentives to invest, like an investment tax credit. Sending out lum-sum rebates, as was doen in spring 2008, makes less sense, as it provides little impetus for spending or production”. See: http://www.nytimes.com/2009/12/13/business/economy/13view.html


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