[X.com] by @florianederer
Why do governments wait until the fiscal crisis hits to act?
Alesina & Drazen (1991) argue that stabilization delays aren’t irrational. They’re a war of attrition as groups fight to avoid bearing the cost.
The Big Beautiful Bill is setting up the next round. https://t.co/gL761GM4Sg
Quoted Tweet:
Jon Steinsson
@JonSteinsson
When I studied Alesina-Drazen 91 in grad school, I associated it with Latin America. But now it feels like home. (If you don't know the paper, it is a gem. Worth reading!)
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Fri Jul 04 02:02:52 +0000 2025