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Remove or Suspend Investment Tax Credit to Curb Inflation?

Monroe M. Bird, Jr.
Financial Analysts Journal
Vol. 25, No. 2 (Mar. - Apr., 1969), pp. 81-82
Published by: CFA Institute
Stable URL: http://www.jstor.org/stable/4470498
Page Count: 2
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Abstract

When inflation threatens to get out of hand, corrective tools are sought. Invariably, some will suggest the removal or suspension of the investment tax credit as a means to help stop inflation. On the surface this seems logical. However, it is theoretically demonstrated in this article that the removal or suspension of the investment tax credit could actually aggravate inflation in the short run and would surely reduce the nation's standard of living potential far into the future.

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