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Practical Aspects of Dynamic Revenue Estimation

The supply-side framework outlined in this paper does not include all the effects of taxation that economists would like to examine. Depending on one's perspective, the glass could be considered half-full as well as half-empty. But if the only "dynamic" thing the Joint Committee on Taxation did was to incorporate the detrimental effects of federal deficits on capital formation, this would be more than worth the effort. ....

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Federal Reserve Independence: Foundations And Responsibilities, Vice Chair Richard H. Clarida, At The Federal Reserve Bank Of Cleveland, Cleveland, Ohio (Via Livestream)

<p><span>The COVID-19 pandemic and the mitigation efforts put in place to contain it delivered the most severe blow to the U.S. and global economies since the Great Depression.</span><a title="footnote 1" href="https://www.federalreserve.gov/newsevents/speech/clarida20211130a.htm#fn1"><span>1</span></a><a name="f1"></a><span>&nbsp;Gross domestic product (GDP) collapsed at a nearly 33 percent annual rate in the second quarter of 2020. More than 22 million jobs were lost in just the first two months of the crisis, and the unemployment rate rose from a 50-year low of 3.5 percent in February to a postwar peak of almost 15 percent in April 2020. A precipitous decline in aggregate demand pummeled the consumer price level. The resulting disruptions to economic activity significantly tightened financial conditions and impaired the flow of credit to U.S. households and businesses.</span></p> ....

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