nakedcapitalism.com - 12/15/2008
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I'm reproducing the bulk of a very good (and possibly final) post by London Banker, a former central banker and securities regulator, that takes issue with some of the conventional wisdom surrounding the efforts to remedy our economic crisis via liberal applications of monetary easing and ...
woodwardhall.wordpress.com - 12/11/2008
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woodwardhall.wordpress.com —
The Obama administration’s focus on infrastructure spending raises
the natural question of the effect of government purchases...
on total GDP. Does government spending stimulate other categories of spending, especially consumer spending? Or does ...
(more)
Financial Crisis and Recession
telegraph.co.uk - 12/12/2008
gregmankiw.blogspot.com - 12/11/2008
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gregmankiw.blogspot.com —
A key issue facing the new Obama administration
is to what extent the economic stimulus should take...
the form of spending increases versus tax cuts. One way to think about the issue is the size of the fiscal policy multipliers. The multipliers measure ...
(more)
Spending and Tax Multipliers
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Fed Watch: What If the Analogy is Wrong?
Economist's View —
... Simply a race down, or a race to the bottom? My challenge is that lacking an
adjustment of the external imbalance, I can easily see that the current policy
path becomes a dead end. Emphasis on “dead.” Yves Smith
lays out an alternative scenario that reminded me of old concerns: ...
Stimuli And Global Balance
Moon of Alabama —
... little, while others, China, Germany, Japan, ... produced for exports and saved.
There is an imbalance between those groups which will have to be adjusted one way or another. When Krugman prescribes stimulus for both sides of the game there is something wrong with his thinking. Stimulus on both sides of the scale can not help to regain a balance. It only freezes the current situation.
So should the U.S. do a Keynsian stimulus at all? As Yves Smith argues it is probably the wrong thing to do: The US in the 1920s was the world's ...
wheelbarrow stocks
Blood & Treasure —
... Amusing, but basically the kind of thing people come up with as an investment proposition on Dragon’s Den, until one of the resident smartarses points out that they could just put it on their card. And it does raise the question of how you get the money to the shop to buy the wheelbarrow. Then again, wheelbarrows could be a useful adjunct to the shortly to be booming grow your own food sector.
Though other people are betting on deflation.
Related Content
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D-DAY
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As for assessing the here and now, it's clear that the deflationary winds are blowing. Producer prices posted a ...
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About that deflation risk
krugman.blogs.nytimes.com 2/5/2009 — Look out below
There has been a distinct change in tone from the Obama team today, as they seem to have become suddenly aware that there's a real risk that the stimulus plan will either fail to pass, or be emasculated to the point that it doesn't come ...