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The Varying Impact of Austerity and Stimulus

While austerity has appeal as a way to reduce budget deficits, it can also depress an economy and reduce employment depending on how it is pursued, an economist writes.

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What Rule Should the Fed Follow?

Conservatives seem determined to try to bar the Federal Reserve from exercising judgment on monetary policy, asserting that it should focus solely on preventing inflation, an economist writes.

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Confusion About the Deficit

Because the American economy is operating far short of its capacity, the government should provide more stimulus, even if it increases the budget deficit, an economist writes.

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Stimulus Even Republicans Can Support

Heading off scheduled cuts in military spending could appeal to both parties, and broadly defining such spending could make it a useful source of economic growth, an economist writes.

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A Keynesian Blind Spot

Government programs that ameliorate hardship also give people an incentive not to work, and Keynesians seem unable to acknowledge that, an economist writes.

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Poverty Should Have Risen

That poverty did not increase during the recession demonstrates that government policies were providing too much help and taking away incentives to work, an economist writes.

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The Microeconomics of Poverty Since 2007

Available data shows clearly that benefits that help people in poverty undercut incentives for them to seek work, an economist writes.

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The Trade-Off Between Economic Growth and Deficit Reduction

The extremely slow recovery from the recession would be dealt a deadly blow if a rigid austerity plan was imposed on government spending, an economist writes.

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The Supreme Court and the Next Fiscal Cliff

More disputes, and more disruptive ones to the economy, loom despite the fiscal-cliff settlement, an economist writes.

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The Labor Market Post-Budget Deal

The recently enacted budget compromise, which increased taxes and extended unemployment benefits, is unlikely to help the labor market this year, an economist writes.

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