To stimulate or not to stimulate. . .
the economy is the question being debated at The Economist.
I have to agree with Allan Meltzer:
"Mr Koo says the government should 'borrow and spend the unborrowed savings in the private sector'. Try to find some. Sorry, but they have been spent and had to be supplemented by massive borrowing abroad and by money growth (M2) in excess of 11% for the last six months. The borrowing and money growth help to pay for the last mistaken short-run stimulus that failed to "jump start" the economy or even make it budge more than temporarily."
I have to agree with Allan Meltzer:
"Mr Koo says the government should 'borrow and spend the unborrowed savings in the private sector'. Try to find some. Sorry, but they have been spent and had to be supplemented by massive borrowing abroad and by money growth (M2) in excess of 11% for the last six months. The borrowing and money growth help to pay for the last mistaken short-run stimulus that failed to "jump start" the economy or even make it budge more than temporarily."
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