#fiscal policy

tbh supply side vs keynes: quick look rn

• leffer curve: tax cut or hike ➤ boost production ➤ larger output swing but can dampen inflation if capacity slack big
• keynesian multiplier: govt spend ➤ demand jumps ➤ up output, risk more price pressure when base is already warm
• numbers: a .2‑point drop in effective top‑rate in 1980s fed us 7‑10% GDP jump for < 1.5% inflation hike in low‑idle environment
• context: laffer shines where supply bottlenecks high (oil shock, post‑COVID). multiplier wins in a near‑potential‑boom scenario
• policy record: early‑80s US and 2019 UK furlough fund show divergent price outcomes; leffer gave more stable output post‑shock

any body got DSGE output or run actual policy test? throw link; your experience decides who wins this spat

bottom line: it isn’t simple—it’s slack + timing, not a pure formula

let's hear who actually gets the inflation upside: supply‑oriented or spending‑oriented?