Let Us Consider
yesterday's Congressional testimony by Alan Greenspan, hardly a rabid liberal. Not only did Greenspan echo his previous comments that monetary stimulus -- such as cutting interest rates, which the Fed does from time to time -- was more effective at stimulating the economy in the short term than fiscal stimulus such as tax cuts.(sic)

More clearly he reported on the results of a study by Thomas Laubach of the Federal Reserve System Board of Governors that demonstrated a .25% rise in interest rates for every one percentage point increase in the ratio of the federal deficit to the gross domestic product. In other words if a tax cut increased the federal deficit to 3% of the GDP we would expect interest rates to rise .75%.

Nothing like actual facts to enhance decision-making.