Saturday, 26 March 2016

Should we make automatic stabilizers bigger and better before the next recession? (Anna Malinovskaya, David Wessel, Brookings)

Automatic stabilizers—mechanisms built into the federal budget that increase spending or decrease taxes when the economy slows without any vote from Congress-- are a major tool the government uses to respond to recession. For instance, spending on unemployment compensation automatically increases when there are more people out of work.

http://www.brookings.edu/blogs/up-front/posts/2016/03/25-automatic-stabilizers-bigger-better-next-recession-wessel

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