Greg Mankiw's Blog: Hall & Woodward on Stimulus Options

Greg Mankiw's Blog: Hall & Woodward on Stimulus Options

In 2009, GDP in the U.S. is expected to be about $900 billion below its normal growth path. The ideal stimulus would have most of its effect in 2009 and would close a reasonable fraction of that gap. We see five general strategies for stimulus:

• Further expansion by the Fed
• Income tax cuts with rebates, as earlier this year
• Tax cuts that reduce the prices of consumer goods temporarily
• Tax cuts that reduce the cost of labor to businesses
• Increase in purchases of goods and services by state and local governments

Last night I sat my fovea riverside, was talking to the moon, you know what a wonderful seamless moon was, always same cycle, new full waning, life is all about cycle, economy cycle also. I have been thinking through my learning about economy cycle. Cycle itself itself, self saturated power to every living thing. This is not new it is old thing, old texts are full based on this. Hoping due to course all nicely sort itself out…