It is hubris to propose that current economic knowledge allows central bankers to adequately fine tune excess reserves via price incentives; instead quantitative lending directives are needed, according to Robin Pope.

Robin Pope argues that Kotlikoff is right to favor shifting payroll taxes to sales taxes only Kotlikoff fails to mention all the benefits that would be obtained by the shift. One of these benefits would be aiding employment by shifting the burden of risk bearing from firms to governments that...