Claudia Sahm, Joel Slemrod, and Matthew Shapiro have the baton on the effects of direct payments to people in cushioning the fall in aggregate demand during a recession. There are good reasons to fear that this supply shock induced recession will be different. But at the moment it is the best we got: Claudia Sahm: 'Research on payments to people in recessions... here are our past papers (with Joel Slemrod [and Matthew Shapiro]): 2008 payments: 2008 payments vs 2009-10 Making Work Pay tax credits: 2011-12 payroll tax cut:

#noted #2020-03-27