Wednesday, January 23, 2008

PeP Daily Links

Fiscal Stimulus Edition:

Paul Krugman has an interesting post on how to effectively target fiscal stimuli.

Bruce Bartlett argues that fiscal stimulus delivers little bang for the buck and that we should skip the whole mess altogether. He touches on Friedman's permanent income hypothesis which Krugman also gets into in his post.

Dean Baker argues we should have a Green Stimulus Package over at TPMCafe. The thrust of his proposal is to offer tax credits/rebates to businesses for the installation of Green building stuffs or something like that.

Greg Mankiw argues, channeling Paul Krugman, that we should skip fiscal stimulus altogether or at least until the fed has demonstrated its monetary tools to be ineffective.

Jason Furman and the Brookings Institute have put out a handy dandy white paper on when and how to administer a fiscal stimulus.

Peter Orzag, CBO Director, has a couple of good posts summarizing fiscal stimulus options.

Arnold Kling offers his typically curmudgeonly perspective on fiscal stimulus (I say this as a positive). Short version: Politicians screw everything up, mainstream macro in this area is voodoo, since this is an election year politicians will really screw it up.

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