Over the past year, the term exit strategy has entered the vocabulary
of economics. But what exactly is such a strategy? This is the topic of
the 45th item in our regular Economics for Amateurs (EFA) series.
The argument in favour of fiscal policy is simple. By increasing public spending or reducing taxation, the government can raise the level of demand in the economy. The question is whether this really works.
The recent recession has again highlighted the question of what
governments can do to influence the level of economic activity. One potential weapon is fiscal policy. But what is it exactly? Economics for amateurs, part 28.
My parrot Maynard hasn’t stopped smiling for weeks. It might be because he doesn’t have any money invested in the stock market. But I think it's because he's pleased that he's now back in fashion. Or, at least, somebody with the same name is.