Sunday, June 20, 2010

David Brooks on Stimulus vs. Debt Reduction

I found this at Tyler Cowen's Marginal Revolution: David Brooks in the 6.10.10 NYT on "Prune & Grow". I think that Krugman addressed these arguments somewhere in one of his blog posts. So where does that leave laypersons? I think that in this book review by Herbert Gintis, also courtesy of Marginal Revolution, lays the best answer: faulty economic modeling, models based on equilibrium that don't tell us about dynamic states in disequilibrium.

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