The wisdom of David Backus

He makes many good points.  Excerpt:

evidence is fuzzy, to be sure, but to me it suggests a multiplier
around one, maybe smaller. Even stimulus cheerleader Paul Krugman only
claims 1.1. If that’s the case, the impact of government spending (say
700b over two years) is barely enough to reverse the decline in GDP we
expect to see over the next two quarters.

Read the whole thing.


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