Econ Comments & Analysis
Mercatus Center | "Timely, Targeted, and Temporary?" An Analysis of Government Expansions over the Past Century
John Maynard Keynes suggested that government should undertake a temporary surge in deficit-financed spending when the economy is in recession. According to proponents of Keynesian theory, stimulus policies need to be “timely, targeted, and temporary” in order to be successful. History has shown, however, that fiscal stimulus policies have a dismal record with respect to these “three Ts.”
