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Robert Barro

Risk for the Economy is Deflation, NOT Inflation

Presently, the federal government is increasing spending that in the end may actually retard economic activity, and is also proposing tax increases that will further restrain private sector growth. In other words, fiscal policy is executing a program that is 180 degrees opposite from what it should be to stimulate the economy. How is it possible to get an inflationary cocktail out of deflationary ingredients? Words: 1461

March 9th, 2010 | Posted in Debts/Deficits | Read More »

 

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