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Mark Thoma on stimulus,
The stimulus was too small, didn’t last long enough, but even so, compared to the correct baseline…the empirical evidence points to effectiveness. [...] the correct question is not “why haven’t we recovered yet,” it’s “where would we be without the stimulus package,” and the evidence sugests we’d be worse off.
Emph. mine. This is a fascinating use of ‘empirical evidence’, which appears to mean ‘in Mark Thoma’s imagination’. It turns out that if you (empirically) use Mark Thoma’s Imagination to compare our reality to an alternative-universe in which less/no stimulus was done (i.e. ‘the correct baseline’), our reality comes out on top. It just doesn’t get more ‘empirical’ than that folks. Economics!
A great, dry takedown of Steven Chu. RTWT.
How a hedge fund makes money off Dodd-Frank. Thank goodness for reform!
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