"If any of these start to materialise, expect me and a number of other stimulus advocates to start backpedalling rapidly"

why neo liberalism
as an ideologians guide to social welfare max
is a stink pot of dismality for us weebles

yes and
even when combined
with a class neutral set of intentions
---as it is
in the mind of our u of c econ con pugsley here---

as for
this rubber clawed
infinite gas bag
of a bird of prey
clarida

mugwumping away here

okay multipliers are low
then up the deficit more

lending by pub sec
top the real economy isn't high enough

okay then uncle lend more to the real economy

ps
if my pal hari has less education
in the exact science
of necessary natural levels of popular misery
then clarida here
then he's that much the better
policy economist
and no one pays him for it

just read a bit on larry summmers
reasoning
when he chose grad work in economics over physics

a poor physicist earns what ...
but a poor economist
hey now he can do quite well indeed

"Was that sentence supposed to make sense? "

its highly leverage bw

by boorrowings from
sources adicted
to too much
faux algebra
and not enough
expository prose

i think he has a notion
that credit markets can gear up household purchases
as well as firms purchases

and his equation system of the mind
prolly looks like these skeleton keys

assume
one aggregate household c(y,r)
as well as
one aggregate firm I(y,r)
oh
and add a credit constraint
err u know value of collateral too
meaning
c(y,r,w) I(y,r,w)
g is free to choose its gig
t is set to auto stablizer mode

x and m ..well they better come home in any case

"We remember nothing of the sort"

okay so the full sweep of your take
might be subject to revisions etc

i suspect tricking Clio
into revealing her deeper class truths
unequically seems unlikely
given the class stakes involved
and the loopy lags

we remain
trapped in the numbers we have

only those ready to leap
to a perception of pattern
will find one or impose one

correcting the p's separating and grouping the q's
are we discovering our assumptions only ??

value added per hour /wage rate per hour

where's the acid test
that parts causation
from tautology

gets mind boggling

Posted by: paine | Link to comment | March 16, 2009 at 12:03 PM

paine says...
"how about the government just drop the interest rate it pays to ZERO by no longer issuing treasury bonds?"

zero rate inflation indexed
t bonds and notes etc
are as good as money
errr ...money stuck in time release capsules

but that gives em a shaping advantage over
just plain old now money eh ???

recall krugmans manage expectations bit

bonds can help that management either way

thus if you want to up expected price levels
don't print money
just create a lot of uncle bonds
okay if you end up lifting rates
then the liquidity trap has vanished anyway eh ??