fisher poll buttressed …

Even though the Fed’s liquidity injections, which have expanded the Fed balance sheet by well over a trillion dollars, have been extremely useful in limiting the negative impacts of the financial crisis, they have not been enough. A fiscal stimulus package is needed to keep the U.S. economy from entering into a deep recession. The $500 billion question is whether the fiscal package can be done right so it has the maximum impact in the short-run but does not lead to future tax burdens that are unsustainable.

http://online.wsj.com/article/SB122930150285205469.html

Mishkin quote:
“The fact that monetary policy is more potent than during normal times argues for even more aggressive easing during financial crises.”

A Neoclassical view that ascribes more power to monetary policy than it actually has, a view that is only marginally different than his target, Christopher Woods. Both think that monetary policy is very potent during normal times, Woods less so during a crisis.

Knapp

In Australia? Are you doing any public speaking engagements? I’d like to come along and listen if possible.

Regards
Paul

sorry, been in australia too long. got 10 more days here. and not much email access next week.

Anyone else tired of hearing the phrase “print money”?

Looks like Obama wants to do something; he and the others seem to still be too focused on debt to do enough, though. They quote Obama at the end of the article saying “We’re not as a nation going to keep being able to print money”. That mindset doesn’t bode well for prospects of extensive revenue sharing. Perhaps he should check out the articles on this site. I’m happy that they’re looking at a bottom-up approach, at least.

The states are facing a huge fiscal crunch right now. Why isn’t the federal govt stepping up to provide money to the states?

I’m sure the state spending is ready to go. All they need is the money. Seems stupid not to cover their shortfalls. Certainly would have a more immediate impact than new capital improvement spending (though I’m sure a lot of state spending is capex).