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Lessons For Tax Policy In The Great Recession

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Executive Summary

While policymakers struggle with identifying and enacting the appropriate short-term policy response to the financial crisis and economic downturn of 2008, 2009, and perhaps beyond (henceforth "The crisis"), both academics and policymakers are examining the causes of the crisis and what lessons this might bring to bear on longer-term policy. With near unanimity attention to both the causes and appropriate long-term policy response has focused on the financial sector, although fiscal policy, including tax policy, has certainly figured prominently in countries' short-term policy response to the economic contraction.

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