New research by Alberto Alesina, Carlo Favero, together with Francesco Giavazzi suggests an answer:
This newspaper studies whether financial corrections drive large output losses. We uncovering that it matters crucially how the financial correction occurs. Adjustments based upon spending cuts are much less costly inwards price of output losses than tax-based ones. Spending-based adjustments convey been associated alongside mild together with short-lived recessions, inwards many cases alongside no recession at all. Tax-based adjustments convey been associated alongside prolonged together with deep recessions.Sumber https://gregmankiw.blogspot.com/
