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Stimulus Without Debt

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  • Laurence Seidman

Abstract

The persistent argument against Keynesian stimulus is that it will require government borrowing and therefore raise debt levels. But the stimulus should also increase incomes, easing any debt burden. The author argues there is another strategy to create stimulus but with no additional debt. He analyzes a wide range of monetary alternatives as well.

Suggested Citation

  • Laurence Seidman, 2013. "Stimulus Without Debt," Challenge, Taylor & Francis Journals, vol. 56(6), pages 38-59.
    • Handle: RePEc:mes:challe:v:56:y:2013:i:6:p:38-59
    DOI: 10.2753/0577-5132560602
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    as
    1. Kenneth Lewis & Laurence Seidman, 2011. "Did the 2008 rebate fail? a response to Taylor and Feldstein," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 34(2), pages 183-204.
    2. Nicholas S. Souleles & Jonathan A. Parker & David S. Johnson, 2006. "Household Expenditure and the Income Tax Rebates of 2001," American Economic Review, American Economic Association, vol. 96(5), pages 1589-1610, December.
    3. Laurence Seidman, 2011. "Keynesian Fiscal Stimulus: What Have We Learned from the Great Recession?," Working Papers 11-11, University of Delaware, Department of Economics.
    4. John B. Taylor, 2009. "The Lack of an Empirical Rationale for a Revival of Discretionary Fiscal Policy," American Economic Review, American Economic Association, vol. 99(2), pages 550-555, May.
    5. Valerie A. Ramey, 2011. "Identifying Government Spending Shocks: It's all in the Timing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(1), pages 1-50.
    6. Laurence S Seidman, 2012. "Keynesian Fiscal Stimulus: What Have We Learned from the Great Recession?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 47(4), pages 273-284, November.
    7. Jonathan A. Parker & Nicholas S. Souleles & David S. Johnson & Robert McClelland, 2013. "Consumer Spending and the Economic Stimulus Payments of 2008," American Economic Review, American Economic Association, vol. 103(6), pages 2530-2553, October.
    8. Laurence Seidman, 2011. "Great Depression II," Challenge, Taylor & Francis Journals, vol. 54(1), pages 32-53.
    9. Laurence Seidman, 2012. "Keynesian stimulus versus classical austerity," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(0), pages 77-92.
    10. Martin Feldstein, 2009. "Rethinking the Role of Fiscal Policy," American Economic Review, American Economic Association, vol. 99(2), pages 556-559, May.
    11. Laurence Seidman, 2001. "Reviving Fiscal Policy," Challenge, Taylor & Francis Journals, vol. 44(3), pages 17-42.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. A debt-free stimulus?
      by Economic Logician in Economic Logic on 2014-01-31 20:58:00

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    Cited by:

    1. Seidman, Laurence & Lewis, Kenneth, 2015. "Stimulus without debt in a severe recession," Journal of Policy Modeling, Elsevier, vol. 37(6), pages 945-960.

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