Richard Koo: a personal view of the macroeconomy

[Skip to the end] I agree, and the deficit of consequence isn’t that high as I think that figure includes the TARP funds which were a form of regulatory forbearance and not spending. Unfortunately, elsewhere he falls short in explaining why deficit spending doesn’t have the downside risks the mainstream attributes to it. Send him […]

Richard Koo on fiscal policy and interest rates

[Skip to the end] Met Richard years ago. Seems he’s still confused on fiscal policy: Bond issues to fund capital injections will not lead to higher interest rates Right! The CB sets rates. Too bad he didn’t stop here rather than try to explain the process. Japan’s second round of capital injections was four times […]