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Tuesday, November 11, 2008

Fiscal stimulus plans - but do we know why?

We can hardly move for plans to increase or direct government spending as responses to the financial crisis and economic slowdown.

All three main political parties in the UK are talking about tax cutting plans (though only Labour actually gets it in terms of the need for a looser fiscal policy). In the US, there are debates about the nature and timing of the next stimulus package.

Yet before we get carried away, are we actually clear what we are trying to achieve?

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