Barro's Response
In 1976, Barro recognized that uncertainty may play a role in changing individual behavior. Nevertheless, he argued,
- ...it is much less clear that this complication would imply systematic errors in a direction such that public debt issue raises aggregate demand.
In 1989, Barro offered a number of defenses against various other critiques.
Read more about this topic: Ricardian Equivalence
Famous quotes containing the word response:
“There is ... but one response possible from us: Force, Force to the uttermost, Force without stint or limit, the righteous and triumphant Force which shall make Right the law of the world and cast every selfish dominion down in the dust.”
—Woodrow Wilson (1856–1924)