John Cochrane had the following great quote in his insightful article, "Fiscal Stimulus, Fiscal Inflation or Fiscal Fallacies?"
"Others say that we should have a fiscal stimulus to 'give people confidence,' even if we have neither theory nor evidence that it will work. This astonishingly paternalistic argument was tried once with the TARP. Nobody could say how it would work in any way that made sense, but it was supposed to be important do to something grand to give people 'confidence.' You see how that worked out. Public prayer would work better and cost a lot less."
We have commented before on John Cochrane's uncanny ability to deliver biting rebuttals when challenged.
(Thanks to Mark Showalter for sending me this.)
"Others say that we should have a fiscal stimulus to 'give people confidence,' even if we have neither theory nor evidence that it will work. This astonishingly paternalistic argument was tried once with the TARP. Nobody could say how it would work in any way that made sense, but it was supposed to be important do to something grand to give people 'confidence.' You see how that worked out. Public prayer would work better and cost a lot less."
We have commented before on John Cochrane's uncanny ability to deliver biting rebuttals when challenged.
(Thanks to Mark Showalter for sending me this.)
lol, This is funny. I really hope the stimulus would work, so that by the time I graduate, the economy would be better.
By the way, I was reading an essay in the Journal of Economic Literature. It's about China's saving rate, and life cycle hypothesis. The things you taught in class last semester for sure helped me understand that essay better.