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December 1987

Federal Fiscal Policy Since the Employment Act of 1946

by Keith M. Carlson

Keith M. Carlson summarizes and examines fiscal policy to determine whether the direction of fiscal actions over the years generally has been consistent with the Employment Act. Using various measures, his study concludes that, during periods of recession and recovery, fiscal actions usually were stimulative and consistent with the Employment Act. During periods of high demand and inflation, however, fiscal actions tended to be inappropriately stimulative; however, these were generally wartime periods.