The Limits of Structural Reform

摘要

Raghuram Raj an argues that rather than rely on fiscal and monetary stimulus to restore growth, Western governments should address the roots of the economic crisis they now face. But in implying that countries must choose between immediate efforts to reduce unemployment and lasting plans to improve productivity,Rajan presents a false dichotomy. In fact, governments do not face a tradeoff between short-term relief and long-term prosperity, since the goods and services that businesses buy as investments contribute just as much to aggregate demand as do the goods and services that households buy for consumption.