Getting Fiscal
Rather than explain again why we are past the point of relying on monetary policy to pull us out of this (rec/depr)ession I’ll let Paul Krugman do it with a graph. Seriously, we are facing a major liquidity trap, to the point where adjusting the money supply will not fix things without creating uncontrollable inflationary pressure. If there were no such thing as fiscal stimulus, then sure, I guess we could gamble. But there is, so we shouldn’t.
