Lessons for Tax Policy in the Great Recession
While policymakers struggle with identifying and enacting the appropriate short-term policy response to the recent financial crisis and economic downturn, both academics and policymakers are examining the causes of the crisis and what lessons this might bring to bear on longer-term policy. With near unanimity attention to both the causes and appropriate long-term policy, the response has focused on the financial sector, although fiscal policy, including tax policy, has certainly figured prominently in countries’ short-term policy response to the economic contraction.