Links of Interest
By Arnold Kling
3. Greg Mankiw makes a futile effort to inject empirical evidence into the debate over using spending or tax cuts to stimulate the economy.
4. Scott Sumner, take hope.
Columbia professor Robert Mundell, who won a Nobel Prize in 1999, called a 30% appreciation in the U.S. dollar against the euro over a three-month period last year one of the causes of the deeper crisis and recession. “This was a story of Federal Reserve policy,” Mundell said. “In a world of flexible exchange rates, low interest rates don’t mean loose policy.”
Thus, we have another voice for Scott’s position that monetary tightening worsened the recession.