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Old 12-29-2009, 01:57 AM
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horatio horatio is offline
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Originally Posted by Howlin' Wolf View Post
would be immediate. I thought he meant in a positive way.
I don't follow American politics very closely, so the only stuff about the stimulus program I have read has been something by Christina Romer, the head of the CEA. She correctly prognosed that the simulus would need quite some time to come to effect and if the POTUS has claimed that it would hit immediately, he was either ignorant or lied.
In my humble opinion (95% of all economists would tell you something else), the stimulus was too small. Export demand cannot do the trick in a worldwide recession, monetary policy cannot do the trick either when interest rates are close to zero (OK, you can do the trick with creative central banking, but "money for nothing", buying worthless assets for money, is not sound central banking IMO), so the only medicine that remains is a temporary increase in government spending.

Last edited by horatio : 12-29-2009 at 02:01 AM.
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