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The US Government monetary policy has failed over the years despite fighting recession for eight consecutive times. The reduction of interest rates and pushing them back up has failed over the years. Paul Krugman explains this failure to be caused by inadequate fiscal stimulus. He argues that deficit spending has been lower than expected over the years and is still lower than standard.
This explanations is derived from the Kenynesian models taught in Economics.
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Dec 14th, 2015
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