1) Daniel Finkelstein may be correct to think that there are believers in "punk tax cutting" - "cut taxes immediately whatever the economic circumstances, sacrifice any other policy objectives to tax cutting at all times, and treat the announcement of future big tax cuts as the only ideological test that matter" - but I am not one of them. Indeed, I have repeatedly said I thought the not-properly-funded tax cut promises of 2001 and 2005 were a mistake and until July this year I was arguing that we should not have a policy on tax, per se, at all!
2) Lord Lawson, Lord Lamont, and the Conservative Front Bench are entirely correct to suggest that monetary loosening and the use of "automatic fiscal stabilisers" are (at least in the first instance) the best way to deal with economic downturn. Indeed, up until just over a year ago the orthodox position would have been that these were the best way to deal with any conceivable downturn in the developed world.
3) The only case I accept for more active fiscal policy than the use of automatic stabilisers relates to a twofold concern that (a) financial market problems in this downturn will lead to impaired ability to borrow; and (b) that the ability of the authorities to actually deliver monetary loosening will be limited by (i) the problems in financial markets meaning that interest rate cuts do not translate into cuts in market interest rates; and (ii) that the necessary cuts in interest rates will take them down to effectively zero, leaving nothing more for interest rate cuts to do and necessitating the resort to (largely untried) alternative methods of injecting money into the system, unless the monetary injection comes in a fiscal form (e.g. by cutting taxes and printing money to fund government expenditure).
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