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KEYNESIAN FISCAL POLICY

13 五月, 2015 - 10:20

Keynes recommends to use an expansionary fiscal policy in the case of a recession: reduce taxes and increase spending. In the case of inflation, the opposite is recommended.

All western governments have adopted measures which have explicitly called for government policies using taxes and spending to control economic activity. For the United States, that evidence is present in the Employment Act of 1946.