Fair, Ray C. - Cowles Foundation for Research in Economics, Yale University - 2012
generated must eventually be paid back. The gain in output and employment on the way up is roughly offset by the loss in output … and employment on the way down as the debt from the initial stimulus is paid off. This conclusion is robust to different … full employment, 2) potential output is taken to be exogenous, 3) possible permanent effects on asset prices and animal …