Monday, February 02, 2009

What are the experts saying about the financial crisis?

Gulzar Natarajan in Limits of macroeconomic policy making?:
"Unfortunate as it sounds, after reading reams of analysis of the ongoing financial and economic crisis, I cannot but get a distinct sense of helplessness, even hopelessness, about our present predicament."
In a similar vein "Paul Samuelson: Financial Crisis Work of 'Fiendish Monsters'":
"Q: What should be the appropriate spending policy this time around?

A: ...I don't know whether your roads, whether your railroads are or are not in need of new things. ... If you're very foolish you will spend where the lobbyists want you to, like building bridges to nowhere. But there are plenty of things, from windmills to nuclear plants, that are useful and worth spending money on.

Spending in the direction of the poor part of the population (is important) because those are the people who are most likely to re-spend. If you primarily spend in the direction of your millionaires, that won't make any difference."
And Toxic Leaders.
Somewhat better news:
Maybe De-Coupling Isn’t Dead links to Rogoff: The Exuberance of India.
P.S.From
Blanchard roundtable: In conclusion:
"We don't sound like expert diagnosticians debating which of several potential infections could be causing a patient's trouble. We sound like witch doctors who can't agree on just where in the body the lifeforce can be found."
And Refuted Economic Doctrines #1-5.

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