Nobel Prize winning economist James Tobin examines the real cause of the recession and the effects of recent federal actions on the nation's budget deficit. The most important issue facing the economy is the adequacy of the net stimulus to demend from the combination of fiscal and monetary policies. Government figures that indicate a recovery in progress are misleading and it may even be premature at this point to consider a full recovery. What is necessary now is to reduce interest rates and the budget deficit in aiming for long-range fiscal stability.
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