I will recommend reading of this Post, which I only skimmed due to the press of Time. The only admonishment I would advance is to consider when We talk about Monetary and Fiscal policy, We are only talking about marginal rates. Any resulting program will vary the direction and load of GDP by about 2%. We then face the real possibility that economist views on marginal rate alterations fail the test of Time. The fringe elements will not doctrinal pressures of the economy, and that the economy will recover when it will, and where it will. It might all be a ‘Teapot in a Tempest’, working in ill-advised manner; actually presenting a counterfactual when the economy needs uniformity to readjust. I do not present the argument that this actually occurs, yet I propound that the possibility could exist.
Follow the previous Post with this One, where We cannot really determine How Much We pay in Interest on the national debt. I do not believe the authors are right on this one, as the Cost to the federal government remains basically stable; only Investors in the debt have challenges in their investment portfolio. The practices of the central banks as described by the authors are actually utilized to great length, but it only provides better performance for the Fed or other central bank, not a cheaper functioning of the Government as a whole. The Cost to both Taxpayer and Investor remains the relative same, as it finally works out; this because the Taxpayer must pay the full amount someday, and the Investor gets the proper price on bond resales. Understand that only Bankers retrieve a Profit from all this distortion.
Who do you think is right–Greg Mankiw or James Kwak? The Answer lies behind Door N. 3–both of them! Everyone is responsible, but We will never get Anyone to admit that they hold some element of responsibility. The Reader must trust his instincts, and they should be telling you that both express high levels of self-denial within their contexts. All of the Problems developed under Bush, and all the Solutions must develop under Obama. This grants the Republican great license, as their damage has already been done; while it leaves the Democrats under great threat, as anything done carries their label. What the Reader needs to remember is that the Democrats voted with the Republicans in the Run-Up, and Republicans will be voting with the Democrats in anything which will be tried to solve the questions of the day. It is helpful to realize that all Politicians are the creatures of Special Interests, such Groups being the real guilty Parties. lgl