tag:blogger.com,1999:blog-7658874470833994309.post4986246317400941178..comments2023-10-20T10:46:21.208+01:00Comments on Knowing and Making: What is the return on fiscal stimulus?Leigh Caldwellhttp://www.blogger.com/profile/16150868700502562500noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7658874470833994309.post-47278440270619823362009-08-23T12:01:36.316+01:002009-08-23T12:01:36.316+01:00Fair points, Anonymous.
First the foreign investm...Fair points, Anonymous.<br /><br />First the foreign investment question: if the money comes from overseas, and is repaid overseas, the net effect is still zero. There is still a question of interest payments but in my argument I am taking those as approximately equal to the discount rate.<br /><br />In general however, I would see the overall argument applying to the world as a whole. So foreignLeigh Caldwellhttps://www.blogger.com/profile/16150868700502562500noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-62727640538712458782009-08-23T06:04:18.595+01:002009-08-23T06:04:18.595+01:00One of your assumptions was that since the govt go...One of your assumptions was that since the govt got cash and the investors got bonds, society as a whole's balance sheet broke even. What happens when you factor in, say 40% of the government bonds are sold to foreigners, foreigners who we are competing the the global economy. I'm not saying it does or doesn't matter, I just want you to explain your thoughts on this.<br /><br /><br Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-80459418036792472692009-08-23T00:03:24.995+01:002009-08-23T00:03:24.995+01:00The anti-stimulators would not make the same argum...The anti-stimulators would not make the same arguments if the guy in office had an "R" after his name, so I'm uneasy with treating them as capable of the intellectual honesty necessary to accept when they're wrong.PunditusMaximushttps://www.blogger.com/profile/09249723289837838687noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-33912320528583303642009-08-22T23:50:24.900+01:002009-08-22T23:50:24.900+01:00Leigh,
Thanks for agreeing with me.
Take care,
...Leigh,<br /><br />Thanks for agreeing with me.<br /><br />Take care,<br /><br />DonDonald Pretarihttps://www.blogger.com/profile/14493535232127084725noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-36582260277356445882009-08-22T22:59:27.192+01:002009-08-22T22:59:27.192+01:00I heard somewhere that you are the "least agr...I heard somewhere that you are the "least agreed with commenter on economics blogs on the planet" so I am wary of agreeing with you for fear of spoiling your record. But you're right.<br /><br />Most of the pro- and anti-stimulus people are talking past each other. Anti-stimulators say "but multipliers have been shown in recent decades to be low - even by Christina Romer - so Leigh Caldwellhttps://www.blogger.com/profile/16150868700502562500noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-39241893582349277922009-08-22T21:34:42.595+01:002009-08-22T21:34:42.595+01:00"I'm going to take Menzie Chinn's fig..."I'm going to take Menzie Chinn's figures as given, as this was our starting point for the debate: so $39 billion of economic activity is created, compared to the counterfactual where no stimulus occurred."<br /><br />A good post. This is my only quibble with Chinn. The assumptions. To me, they fall into the category of reasonable, but not provable. I consider Posner's Donald Pretarihttps://www.blogger.com/profile/14493535232127084725noreply@blogger.com