1002-ch23曼昆 宏观经济学.pptVIP

Five Debates over Macroeconomic Policy 23 In this chapter, look for the answers to these questions: What are the arguments on both sides of each of the following debates? Should policymakers try to stabilize the economy? Should monetary policy be made by rule or discretion? Should the central bank aim for zero inflation? Should the government balance its budget? Should the tax laws be reformed to encourage saving? A C T I V E L E A R N I N G 1 Active policy stabilization Would you be more likely to support active stabilization policy if wages, prices, and expectations adjust quickly in response to economic changes, or if they adjust slowly? A C T I V E L E A R N I N G 1 Answers If wages, prices, and expectations adjust slowly, it will take longer for the economy to return to its natural rates of output and employment. In that case, there’s a better chance that expansionary policy will act in time to alleviate the recession, rather than push the economy into an inflationary boom. A C T I V E L E A R N I N G 2 Switching to a consumption tax Suppose the income tax were replaced with a consumption tax, and the tax rate was chosen carefully to ensure that the average person’s tax burden remains unchanged. Who would benefit? Who would be worse off? A C T I V E L E A R N I N G 2 Answers People with higher incomes save a bigger percentage of their incomes, so would benefit most from this change. People with low incomes use most or all of their incomes for consumption and would be worse off. (This is why most consumption tax proposals include exemptions for necessities, such as groceries, which comprise a larger share of the budgets of low-income persons.) CHAPTER SUMMARY Advocates of active policy argue that the economy is inherently unstable and believe that policy can manage aggregate demand to help stabilize output and employment. Critics of active policy note that policies act with long lags and can end up destabilizing the economy rath