Hoon, Hian Teck; Phelps, Edmund S. - Department of Economics, School of Arts and Sciences - 2004
We study here the effects of future tax and budgetary shocks on present levels of economic activity and real interest rates in a nonmonetary and possibly non-Ricardian economy. The paper first takes up an (unanticipated) temporary tax cut to be effective on a given future date " a delayed "debt...