johaneriksson.se

A rather interesting debate is going on in the economics part of the blogosphere. Greg Mankiw doubts the Obama team’s prediction that GDP in 2013 will be 15.6 per cent above what it was last year. Brad DeLong disagrees, and Paul Krugman joins in. Mankiw answers back, and offers up a bet.

It would, of course, be preferable if Mankiw ended up being wrong. Stefan Karlsson thinks he’s right, and offers a good comparison with the 1930s. Good stuff for the econ geeks among you.

My personal view is somewhat pessimistic, and I think Karlsson’s last point is worth taking to heart.

Furthermore, the fact that politicians like Herbert Hoover and Barack Obama tends to respond to slumps with political actions that damage long-term growth, such as higher marginal tax rates and higher spending, compounds this effect.

—-

Andra intressanta bloggar om: politik, ekonomi
Technorati Tags: politics, economics