Thursday, April 24, 2008

Is tax 'rebate' doomed to fail?

That is the title of an article that you can read here. People need to spend the money if the rebate is going to help the economy (so AD can increase, if we are below the full-employment GDP). They might not. And how much they spend might depend on what you call it. Calling it something else and not a rebate might make a difference.

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