The case for lowering taxes

As macro policies go governments have two main tools to implement them: fiscal and monetary policy. Since the start of the current crisis in 2007 both of them have been used in an attempt to push up aggregate demand. Until now the results are not what anyone would reasonably expect from looking at the public debt growth and from key policy rates near zero. Basically,  policy makers supplied fiscal shocks one after another (increased government expenditures) while monetary policy accommodated those shocks by increasing money supply (lowering interest rates).