This isn’t really news

January 1, 2010

“further deficit spending may not be a politically viable option. Instead, we are likely to see a big fight over raising the national debt ceiling, and a push to reverse the stimulus we already have. In that context, here’s some good news extracted from economic theory: We don’t need to go deeper into debt to stimulate the economy more. For economists, of course, this isn’t really news. It has long been known that Keynesian economic stimulus does not require deficit spending.” – Read article