Questions that are rarely asked

Was September 2008 the month of greatest increase in United States Wealth in History?

Doesn’t the long term economic impact of 5-10 trillion dollars of offshore oil overwhelm the trillion dollars from the bailout?

That’s from Andrew, a loyal MR reader.  He sends along this link.  I have not myself done any calculations of the fiscal benefits from such oil (which are distinct from the price effect, which is likely small).  Does anyone know a number?

At first I thought he was going to mention the recent decline in the price of oil, which on average you can expect to be permanent.  The real lesson, I would say, is how much coordination (or lack thereof) matters and how badly representative agent models perform in explaining the most important economic changes.


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