Question
Fiscal policy response to the Great Recession In an opinion piece in New York Times (Aug 28, 2010), Laura Tyson (a Berkeley professor!) wrote:
Fiscal policy response to the Great Recession
In an opinion piece in New York Times (Aug 28, 2010), Laura Tyson (a Berkeley professor!) wrote: "The federal government should also create also capitalize a National Infrastructure Bank that would provide greater certainty about the level of infrastructure financing over several years, select projects based on rigorous cost- benefit analysis, invest in things like interstate high-speed rail that require coordination among states and attract private co-investors in projects like toll roads and airports that generate dedicated future revenue streams." This policy was not implemented. How effective would have been her proposal in stimulating the economy? (8 points)
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