Having waded my way through the Congressional Budget Office forecast a few things stand out. First: the proposed stimulus plan is actually quite small when compared with the hole in the economy that is emerging. The best way to calculate the needed ‘fix’ is to look at where the economy would be were it operating […]

The latest report from the Congressional Budget Office was released today. The outlook is grim. Here’s a link to the report: CBO Outlook 2009 – 2019 The report is the usual long winded analysis, but the headline is the Federal deficit of over $1 trillion for this revenue year. And that’s without the effects of […]

Paul Krugman alerted me, in his blog, to this academic paper: Rajan Paper 2005 I pass it on to you in the hope that some of you will read it. The author is a respectable economist who was roundly set upon by the establishment figures gathered at the Jackson Hole event he presented the paper […]