Brad DeLong on fiscal policy

Brad thinks I am too pessimistic about the prospects for a fiscal-led recovery:

But surely we believe that if the U.S. government were to follow the
Countrywide plan–to send its representatives out onto the streets to
have them walk up to people and say: "Here’s $500,000. You can have it
if you go buy a house"–then that would drive a recovery, right? I mean
it drove a recovery in 2003-2006, didn’t it?

Even the Austrians believe that spending–in their case, driven by
credit-expansion created by the malefactors of fractional-reserve
banking–works. So why can’t the government do what fractional-reserve
bankers can?

Here is the link.


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