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  • About
  • Knowledge Centre
    • Economic Growth and the Business Cycle
    • Monetary Policy and Inflation
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Tag Archives: Boom Bust

The Trouble with Fiscal Stimulus Policies

Economic Growth and the Business CycleBy Stuart AllsoppJuly 28, 2018Leave a comment

Intro: Fiscal stimulus measures often appear to work because the benefits that result are highly concentrated and visible while the costs are disbursed and invisible. When fiscal stimulus does ‘work’ it does so by preventing the emergence of idle resources resulting from the unwinding of economic imbalances, but in doing so it creates additional distortions.…

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