To Starve or Not to Starve the Beast? /

For thirty years prominent voices have advocated a policy of starving the beast cutting taxes to force government spending cuts. This paper analyzes the macroeconomic and welfare consequences of this policy using a two-country general equilibrium model. Under several strong assumptions the policy, i...

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Bibliographic Details
Main Author: Kumhof, Michael
Other Authors: Laxton, Douglas, Leigh, Daniel
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2010.
Series:IMF Working Papers; Working Paper ; No. 2010/199
Online Access:Full text available on IMF