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Structural, Not Cyclical, Budget Reform (Economics One, 2 min read) John Taylor cautions against reforming automatic fiscal stabilisers in the US as they work as well now as in the past. Instead, gradual reduction in the spending/GDP ratio would provide a structural improvement in the fiscal deficit and debt position.
Learning About Fiscal Multipliers During the European Sovereign Debt Crisis (VoxEU, 6 mins read) Rising fiscal austerity had an increasingly negative impact on economic growth during Europe’s sovereign debt crisis. But, in contrast to earlier studies, the fiscal multiplier did not rise above 1.
Peter Thiel on the Funding of Science (Marginal Revolution, 2 min read) Advances in science are being held back by increased bureaucracy and a slow regulatory process. A body channelling funding towards more high-risk research, as well as moving away from the standard double-blind trials could boost scientific progress.