Bernanke's View of Fiscal Policy


by Cato Institute on Jan 8, 2014 | Views: 191 | Score: 1
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Cato Institute
Cato Institute on Jan 8, 2014 6:54 PM said:

Federal Reserve chairman Ben Bernanke stated that 'except for in 2009, we’ve had very tight fiscal policy'. In Keynesian economics, government deficits are stimulative while surpluses are “tight” or destimulative. Despite Bernanke's claims of tight fiscal policy, the following chart shows that in the four years after 2009, we had $4.4 trillion of federal deficit spending, or supposed Keynesian stimulus.