Supporters of austerity-like Scott Sumner-have been gloating over Friday's solid-though not spectacular-job numbers.
http://diaryofarepublicanhater.blogspot.com/2013/05/sumners-nuanced-support-of-austerity.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DiaryOfARepublicanHater+%28Diary+of+a+Republican+Hater%29
Matt Ygelsias on what the numbers mean:
"Does that mean austerity is wonderful and fiscal stimulus is bunk. No, it doesn’t. The standard critique of fiscal stimulus is that since the Federal Reserve has such a large role in steering the macroeconomy, monetary policy will offset any attempted fiscal expansion with deliberate monetary contraction. The plain text of the Evans Rule is a temporary suspension of this principle. If fiscal stimulus causes both an increase in real growth and an increase in the price level, the Fed will smile upon that conclusion as long as the impacts are modest. The Fed has given Congress a very effective parachute to counteract the fiscal plunge, but Congress could enact a jetpack that would be even more potent."
http://www.slate.com/content/slate/blogs/moneybox.5.html
Of course that's exactly what the GOP-and Sumner- wants to claim. They are trying to spin it as proving exactly this yet claiming that the President's policies are hampering the recovery-basically supposedly ObamaCare and not approving the Keystone pipeline are all that's separating us from economic health.
http://www.politico.com/politico44/2013/05/white-house-maintains-sequester-hurting-economy-no-163208.html?hp=r14
How can you on the one hand laud the numbers as proof that the sequester is wonderful, or at least, is doing no harm, and at the same time claim that the numbers would be better if we did Keystone and there were no ObamaCare? At the least this demonstrates that unless you are following "structuralists" who think we're close to full employment and trend output right now you understand that while the numbers were good on Friday we're still far from living in Pangloss' world.
http://diaryofarepublicanhater.blogspot.com/2013/05/sumners-nuanced-support-of-austerity.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DiaryOfARepublicanHater+%28Diary+of+a+Republican+Hater%29
Matt Ygelsias on what the numbers mean:
"Does that mean austerity is wonderful and fiscal stimulus is bunk. No, it doesn’t. The standard critique of fiscal stimulus is that since the Federal Reserve has such a large role in steering the macroeconomy, monetary policy will offset any attempted fiscal expansion with deliberate monetary contraction. The plain text of the Evans Rule is a temporary suspension of this principle. If fiscal stimulus causes both an increase in real growth and an increase in the price level, the Fed will smile upon that conclusion as long as the impacts are modest. The Fed has given Congress a very effective parachute to counteract the fiscal plunge, but Congress could enact a jetpack that would be even more potent."
http://www.slate.com/content/slate/blogs/moneybox.5.html
Of course that's exactly what the GOP-and Sumner- wants to claim. They are trying to spin it as proving exactly this yet claiming that the President's policies are hampering the recovery-basically supposedly ObamaCare and not approving the Keystone pipeline are all that's separating us from economic health.
http://www.politico.com/politico44/2013/05/white-house-maintains-sequester-hurting-economy-no-163208.html?hp=r14
How can you on the one hand laud the numbers as proof that the sequester is wonderful, or at least, is doing no harm, and at the same time claim that the numbers would be better if we did Keystone and there were no ObamaCare? At the least this demonstrates that unless you are following "structuralists" who think we're close to full employment and trend output right now you understand that while the numbers were good on Friday we're still far from living in Pangloss' world.
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