Research Report Activist Fiscal Policy to Stabilize Economic Activity
Alan J. Auerbach, William G. Gale
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Facing the most severe recession since the 1930s, and probably the longest as well, the U.S. government has adopted an aggressive countercyclical fiscal policy stance, beginning with the Economic Stimulus Act of 2008 in February of that year, shortly after the recessions designated starting date, and followed one year later by the much larger American Recovery and Reinvestment Tax Act of 2009. These two bills, adopted under different presidents, both contained temporary tax rebates for households and temporary investment incentives for firms, indicating at least limited bipartisan acceptance of these approaches to countercyclical stimulus.
Research Areas Economic mobility and inequality Neighborhoods, cities, and metros Taxes and budgets
Tags Fiscal policy Individual taxes Taxes and business Federal budget and economy Income and wealth distribution Community and economic development
Policy Centers Urban-Brookings Tax Policy Center