Ricardian Equivalence - Barro's Response

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:

    [In response to this question from an interviewer: “U. S. News and World Report described you this way: ‘She’s intolerant, preachy, judgmental and overbearing. She’s bright, articulate, passionate and kind.’ Is that an accurate description?”:]
    It’s ... pretty good [ellipsis in original].
    Joycelyn Elders (b. 1933)