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However, at the root of this damage is a shortfall in households’ and businesses’ lack of demand for goods and services—an eminently solvable problem. Begins a Serious Fiscal Debate.” Moody’s Analytics, April 14. Budget hawks should have an additional reason to be concerned about expanding output gaps: As a rule of thumb, every dollar the economy moves away from potential GDP adds

Preferences of the policymaking elite and the broader economic policy discourse are far removed from such an acknowledgement—and an aggressive reorientation of fiscal policy, such as the one proposed in this paper, is often brushed off as politically infeasible. Moody’s Economy.com, My [subscription-only database].

The United States must avoid similar self-inflicted and thoroughly counterproductive economic damage. Labor Force Participation: Cyclical Versus Structural Changes Since the Start of the Great Recession.

The top policy priority must be ensuring a rapid return to full employment. “The Realities and Relevance of Japan’s Great Recession: Neither Ran Nor Rashomon.” STICERD Public Lecture, London School of Economics, May 24.

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.37 to the cyclical budget deficit through decreased tax receipts and increased automatic safety net spending (Bivens and Edwards 2010). Unfortunately, this risk seems all but certain of coming to pass. — is a federal budget policy analyst with the Economic Policy Institute and The Century Foundation. — Josh Bivens joined the Economic Policy Institute in 2002 and is currently the director of research and policy. He previously worked as an assistant budget analyst and research assistant with the House Budget Committee.

Preferences of the policymaking elite and the broader economic policy discourse are far removed from such an acknowledgement—and an aggressive reorientation of fiscal policy, such as the one proposed in this paper, is often brushed off as politically infeasible. Moody’s Economy.com, My [subscription-only database].

The United States must avoid similar self-inflicted and thoroughly counterproductive economic damage. Labor Force Participation: Cyclical Versus Structural Changes Since the Start of the Great Recession.

The top policy priority must be ensuring a rapid return to full employment. “The Realities and Relevance of Japan’s Great Recession: Neither Ran Nor Rashomon.” STICERD Public Lecture, London School of Economics, May 24.

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The opportunity cost of sustained economic weakness in terms of living standards, inequality, the fiscal outlook, and economic scarring to potential productive resources is simply too high to jettison 80 years’ worth of hard-earned economic knowledge.