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BPEA Article

Liquidity Constraints, Fiscal Policy, and Consumption



TAX POLICY AND TAX REFORM are important items on the current policy
agenda. In evaluating alternative tax policies, decisionmakers must
consider both their normative and positive impact; in particular, they
must examine the effects of competing policies on the overall well-being
of the taxpayers and on various indexes of economic activity, in both
the short run and long run.


R. Glenn Hubbard

Dean and Russell L. Carson Professor of Finance and Economics - Columbia Business School


Lawrence H. Summers

Charles W. Eliot University Professor and President Emeritus - Harvard University

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