"Mundell’s models allowed a significant role for fiscal policy, especially under fixed exchange rates. However, the treatment was entirely Keynesian—an increased budget deficit operated solely by raising the aggregate demand for goods. Moreover, increases in government spending and cuts in taxes had pretty much the same effect on the economy."
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Academics from CanadaEconomists from CanadaEducators from CanadaPeople from OntarioNobel laureates in Economics
Original Language: English
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Sources
Robert Barro, Nothing Is Sacred (2002) p. 23
https://en.wikiquote.org/wiki/Robert_Mundell
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Robert Mundell
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