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"
Monday, January 26, 2009
Keynes on Obama's stimulus package
Via ThinkMarkets:
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"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."
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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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