Barro's Response
In 1976, Barro recognized that uncertainty may play a role in changing individual behavior. Nevertheless, he argued,
- ...it is much less clear that this complication would imply systematic errors in a direction such that public debt issue raises aggregate demand.
In 1989, Barro offered a number of defenses against various other critiques.
Read more about this topic: Ricardian Equivalence
Famous quotes containing the word response:
“It does me good to write a letter which is not a response to a demand, a gratuitous letter, so to speak, which has accumulated in me like the waters of a reservoir.”
—Henry Miller (1891–1980)