On stimulus

We have discussed two perspectives on the economic stimulus that began in earnest in 2009 and is now winding down.

One perspective is exemplified by Sally Platt, who noted that the stimulus did not work, but merely contributed to the deficit and was detrimental to the overall economy: "Let's be honest, the stimulus plan did nothing". Another perspective - less featured on our blogs thus far, but one that received several approving nods in the classroom - is that the stimulus was inadequate, not big enough.

It may not come as surprising that both Stiglitz and Krugman take on the second of these perspectives. Krugman has done so in many articles in the New York Times over the last two years, and Stiglitz on several instances as well. It should be noted that while both lean more Democratic than Republican, neither necessarily applauds the Obama administration on their execution of the stimulus, though both would be highly critical of Republican reactions.

More surprising, perhaps, is Martin Wolf, whose perspective on the stimulus would not have been a foregone conclusion. Here it is.

Thanks to Prof. Casey in the Econ department for noting this when he saw me carrying my Wolf book around after class.