Saturday , June 15 2024
Home / EconoSpeak / Summers and Ricardo

Summers and Ricardo

Summary:
I share some of Summers' concerns about the magnitude of Biden's proposed stimulus.  The comparison to the January 2009 situation is marred by the fact that we are not now in a Demand-deficient Keynesian-style recession as we were then. What's holding back output now is clearly pandemic-induced supply constraints. On the other hand, if the Ricardian Equivalence theorem holds, perhaps some non-negligible portion of the transfer component of the stimulus will be saved. (Even borrowing-constrained individuals will save some of a big-enough transfer.)

Topics:
kevin quinn considers the following as important:

This could be interesting, too:

John Quiggin writes The edge of extinction

Lars Pålsson Syll writes The psychopathy of Ayn Rand

NewDealdemocrat writes May CPI continued to be all about shelter

Merijn T. Knibbe writes Deaths of infants and young children in Gaza. A fact-based estimate.

I share some of Summers' concerns about the magnitude of Biden's proposed stimulus.  The comparison to the January 2009 situation is marred by the fact that we are not now in a Demand-deficient Keynesian-style recession as we were then. What's holding back output now is clearly pandemic-induced supply constraints. 

On the other hand, if the Ricardian Equivalence theorem holds, perhaps some non-negligible portion of the transfer component of the stimulus will be saved. (Even borrowing-constrained individuals will save some of a big-enough transfer.) 


Leave a Reply

Your email address will not be published. Required fields are marked *