When the Great Recession hit and it became clear that monetary policy alone would not be enough to prevent a severe, prolonged downturn, fiscal policy measures – a combination of tax cuts and new spending – were used to try to limit the damage to the economy. Unfortunately, macroeconomic research on fiscal policy was all but absent from the macroeconomics literature and, for the most part, policymakers were operating in the dark, basing decisions on what they believed to be true rather than on solid theoretical and empirical evidence - See more at: http://www.thefiscaltimes.com/Columns/2014/10/28/Are-Economists-Ready-Income-Redistribution#sthash.S9k6e0pO.dpuf
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