The same rational, non-credit constrained individual that will save a tax rebate in anticipation of higher taxes in the future is the same rational, non-credit constrained individual that will save something extra in the good times so he can maintain his consumption level unchanged during recessions - as much a certainty in life as death and taxes.
If you believe that fiscal stimuli are pointless, then you don't believe in recessions as we know them.
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Review topics and articles of economics © 2011 If you believe in Ricardian equivalence, you don't believe in recessions
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