…would become evident. I mean, how is it we can be talking about the effectiveness of a stimulus package in terms of it’s multiplier effect which jams with velocity and…

…other. Money will leave the system as quickly as it entered. Tyler links to a textbook discussion of the old-fashion money multiplier model and sides with Friedman. I wish I…

…They continue: This suggests either that there is something wrong with: the theory of money neutrality; the theory of the money multiplier; or how money is measured. Or, I would…

…simply invoking the tired old money-multiplier/loanable-funds/savers-fund-borrowers silliness (but here on steroids) that has been so resoundingly discredited by so many over so many decades? Yes: Plainly this re-use of pledged…

States refusing to expand Medicaid to 133% of FPL has repercussions for those making less than 100% FPL. The PPACA was intended to setup State Exchanges where people could buy…

…cause that he is not mentioning. What appears to be low demand is actually the symptom of lower labor share muting the money multiplier effect of investment. Paul Krugman knows…

…in the 4th quarter of 2008 — a falling off the cliff decline. This corresponds to a really impressively large multiplier. Consumption was only 61% of GDP in thrifty Japan…

…deficit and not on G. This is totally unreasonable in a critique of Krugman. Krugman has repeatedly stressed the difference between the Government expenditure multiplier and that tax cut multiplier….

…mean there isn’t a population to labor multiplier, or that the multiplier cannot change over time. In an era of relatively slow economic growth, economies of scale, and outsourcing abroad,…

This is going to be a very long post with independent chapters (I won’t impose by making a series of posts) I. What is “Ricardian Equivalence” The basic idea is…