Imf: Budget Cuts Hurt Growth A Lot. But Tax Increases Barely Matter.

A new study (pdf) by the International Monetary Fund raises a further warning flag for fiscal cliff negotiators in the U.S. In what it bills as the first-ever study of its kind, the fund analyzed decades of data on the world's major industrialized countries to estimate how changes in government spending or revenue affect economic output.

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  • IMF: Budget cuts hurt growth a lot. But tax increases barely matter.
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