tag:blogger.com,1999:blog-2277215496195926573.post1121742663360593754..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: The multiplier is totally irrelevant.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2277215496195926573.post-60235167659745309372011-07-27T01:22:22.108-07:002011-07-27T01:22:22.108-07:00Hmm... They have the same net accounting effect, b...Hmm... They have the same net accounting effect, but i doubt they'd have the same short-term effect on market outcomes. A combination of both would be the best, i think.<br /><br />The gov't spending makes sure those dollars go through at least one transaction, so as to temporarily stabilise demand. The lower taxes let the private sector net save and regain confidence faster, so the deflationary tendencies go away faster and the need for the much-harder-to-design spending policies won't be needed for as long.<br /><br /><br />//HarPeAnonymousnoreply@blogger.com