Friday, September 30, 2011
More deficits, not fiscal responsibility
So there is a short review of the Hinckley Forum debate here. Not bad, but the title is misleading, since nobody was for for fiscal responsibility in the way it is usually defined, i.e. fiscal contraction. By the way, fiscal responsibility, like fiscal consolidation, is one of those code words for adjustment, that should be avoided. At any rate, if you missed it, that is a reasonable summary.
PS: I also emphasized that uncertainty is not central for the current weak recovery, lack of demand is and Steve agreed that without more demand there will be no more confidence. In fact, Steve's plea was for public investment in infrastructure. That's a way of recovering confidence that I'm also for.