Tuesday, December 23, 2008

Piketty Favors a Decrease in the VAT

Another economist in the news: Thomas Piketty argues for an immediate reduction of the VAT, as in the UK.

1 comment:

Leo said...

Although I stand with Pikety when he points out the lack of debate here on the impact of a VAT cut, I believe Blanchard is more convincing with his argument that the key to recovery is spurring demand which a VAT cut would probably not achieve. However, the speedy impact of infrastructure investment is more debatable.