Alhambra Research Note: The Impact of Fiscal Policy on the Stock Market and the Economy

By |2012-05-28T17:29:24-04:00May 28th, 2012|Economy, Federal Reserve/Monetary Policy, Markets|

By John L. Chapman, Ph.D.      Washington, D.C.       May 28, 2012 The current debate in Washington over fiscal policy parallels that of the Presidential campaign: how do taxes and government spending affect the economy?  Does more spending “grow” the economy, as modern-day Keynesians suggest?  Can progressive tax increases benignly cut any government deficit?  Both theory and historical evidence suggest otherwise. Writing [...]