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Raising taxes could tip us back into recession (The Article, 5 min read) George Magnus argues there is no need to raise taxes. [Bearish UK assets]
How US consumers use their stimulus payments (Vox EU, 5 min read) ‘Most respondents report that they primarily saved or paid down debts with their transfers, with only about 15% reporting that they mostly spent it.’
Effective Demand Failures and the Limits of Monetary Stabilisation Policy (NBER, 37 page read) Leading macroeconomist Michael Woodford, explains how the COVID-19 shocks are different from the typical ‘supply’ and ‘demand’ shocks of the past. As a result, fiscal transfers are better-suited to eliminating distortions and the ineffectiveness of monetary policy is nothing to do with low interest rate environments.