…“Can” explain or “does” explain? No weasel words here, please. We have become so efficient that we now have an enormous trade deficit? Stormy Rdan here: The argument rages here…

Greg Kaza is elated that the politicians will start (ab)using dynamic scoring: Dynamic scoring, however, attempts to measure the feedback-effects ignored in these models – those feedback-effects potentially becoming excellent…

…are all reversed in four years, and that there are no major recessions. A moderate recession could easily worsen the deficit significantly. Let us suppose that the deficit is big…

…this deficit problem? They can raise additional tax revenues and/or reduce spending. But if a policy to lower the budget deficit reduces economic activity, more people will lose their jobs,…

…deficit is shrinking, thanks to the Bush tax cuts“) is that the Bush tax cuts have increased economic growth dramatically. So dramatically, in fact, that they are responsible for the…

…that is already near 5% of GDP. While the rise in the deficit might only be temporary, the long-run prospect for deficit financing are ominous – unless we start adopting…

Unpartisan.com documents six reactions from the conservative blogs but only Brad DeLong was mentioned from the Reality Based Community. On the right – BlogsforBush carried the Administration’s spin that this…

James Hamilton has an excellent discussion of why we should be concerned about the large current account deficits, while David Altig follows-up with the hope that this borrowing is only…

…ritual in Congress. What will this do to the deficit? Here is a chart showing the deficit to the end of this decade before and after this agreement, according to…

Joseph Stiglitz is editor of The Economists’ Voice and has this article in its inaugural edition. He notes that long-term fiscal stimulus crowds out investment – a theme he also…