The Faulty Assumptions Behind the CBO’s Enhanced Unemployment Multiplier
The nonpartisan Congressional Budget Office’s analysis of the macroeconomic impacts of the Enhanced Unemployment Insurance (EUI) provisions of the CARES Act is deeply flawed.
Fiscal Policy
23 postsStructuring Federal Aid To States As An Automatic (and Autonomous) Stabilizer
The federal government should provide support to state governments during economic downturns in the form of block stabilization grants that serve to replace lost tax revenue.
COVID-19 and Low Interest Rates Make Fiscal Stimulus And Enhanced Automatic Stabilizers A No-Brainer
The impact of COVID-19 is likely to be sizable. Regardless of the precise composition of the shock to supply and demand, further macroeconomic policy action is now necessary.
