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Fiscal Stimulus, Fiscal Inflation, or Fiscal Fallacies?

Keynes as Public Works Skeptic « ThinkMarkets

I say it again: I believe that many of the people wanting fiscal stimulus want it for reasons other than fiscal stimulus. Fair enough–maybe we do need better infrastructure, etc. etc, but calling it stimulus is going to be costly in the future, when it becomes clear that it does not stimulate, and we need to cut spending again or face some budgetary crises or another.

It is a bit amazing that so much of the discussion is ‘blackboard economics’ when the real question is surely one of magnitudes. My sense is that they are small.

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