April 1, 1977

Tax Review: Full Employment Budget: How Good a Guide to Public Policy?

Download Tax Review: Full Employment Budget: How Good a Guide to Public Policy?

Volume XXXVIII No. 4

Executive Summary
Can chronic deficits cure secular stagnation? Basic to the notion of full employment budgeting is the assumption that fiscal policy can be used to reduce unemployment, says economist Alan Reynolds. But fiscal policy, the author points out, can only promote inflationary monetary policy or reduce investment and growth.