With regard to the unconventional policy measures in the United States, particularly the large-scale government bond purchase program – the so-called “quantitative easing II,” implemented from November 2010 to June 2011 – there has been controversy about the effects of the policy measures.
Developed in 1927 by the economist Frank Ramsey, it asserts that the input factor with the lowest elasticity of substitution should be taxed most. In order to keep the distortionary effects of taxation as moderate as possible, those factors that react least to taxation should be taxed most.