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How to Combat Recession – Stimulus without Debt - Oxford Scholarship Online
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How to Combat Recession: Stimulus without Debt

Laurence Seidman


This work analyzes all aspects of a new policy to combat recession: “stimulus without debt.” Fear of deficits and debt kept Congress from enacting a large enough fiscal stimulus to overcome the Great Recession that began in 2008, and this fear is likely to restrict fiscal stimulus in the next severe recession. “Stimulus without debt” is a new policy that would increase aggregate demand for goods and services in a recession without increasing government debt. Stimulus without debt consists of a transfer (not loan) from the central bank to the national Treasury (or to national treasuries in the ... More

Keywords: stimulus without debt, fear of government deficits, fear of government debt, recession, tax rebate, aggregate demand

Bibliographic Information

Print publication date: 2018 Print ISBN-13: 9780190462178
Published to Oxford Scholarship Online: May 2018 DOI:10.1093/oso/9780190462178.001.0001


Affiliations are at time of print publication.

Laurence Seidman, author
Chaplin Tyler Professor of Economics, University of Delaware