Furman Says Tax Cuts Don't Pay for Themselves

The video discusses the role of the IMF in global economics, particularly its interactions with the United States. It examines the effects of tax reform on GDP and the national deficit, highlighting the views of various economic models and institutions. The discussion also covers the potential impact of tax cuts on inflation and how the Federal Reserve might respond to these changes.

How does the speaker believe the Federal Reserve would respond to short-run demand changes due to tax cuts?

What does the speaker suggest about the relationship between tax cuts and inflation?