Monday, January 26, 2009

Keynes on Obama's stimulus package

Via ThinkMarkets:
Organized public works, at home and abroad, may be the right cure for a chronic tendency to a deficiency of effective demand. But they are not capable of sufficiently rapid organisation (and above all cannot be reversed or undone at a later date), to be the most serviceable instrument for the prevention of the trade cycle.
It looks as if Lord Keynes would not be among Obama's "consensus"

2 comments:

  1. "If you put two economists in a room, you get two opinions, unless one of them is Lord Keynes, in which case you get three opinions."
    ~Sir Winston Churchill

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  2. From MarginalRevolution, "Stimulus timing" on 1/27/2009 (don't know how to include a link) we find that the CBO says outlays would be "$93 billion during the remaining several months of fiscal year 2009, by $225 billion in fiscal year 2010 (which begins on October 1), by $159 billion in 2011, and by a total of $604 billion over the 2009-2019 period." Is this what Larry Summers considers timely?

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