Monetary Stimulus Crucial
July 23, 2012 at 11:50 AM EDT
Here’s a few observations that might be loosely viewed as responses to thoughtful conservatives who are skeptical of the need for monetary stimulus: 1. Three times Consider the following three dramatic declines in NGDP growth: 1929-30, 1981-82, and 2008-09. Now think about what the sticky wage model would predict in each case. I’d say a [...]