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:

    Perhaps nothing is so depressing an index of the inhumanity of the male-supremacist mentality as the fact that the more genial human traits are assigned to the underclass: affection, response to sympathy, kindness, cheerfulness.
    Kate Millet (b. 1934)