Tuesday, August 18, 2009
Another non-problem of the federal deficitPaul Krugman (Nick Beaudrot explains it all 08/17/09) has a good brief reminder about how superficial and wrong the deficit scolds can be, in this case in particular on the idea that high deficits drive up interest rates:
On reflection, it’s obvious why: a weak economy both drives up deficits and drives down the demand for funds, while a strong economy does the reverse. Thus the surpluses of the late Clinton years were associated with high interest rates, while the current recession has depressed both rates and revenues.Tags: us economy
| +Save/Share | |
Links to this post:
No subject for immortal verse
That we who lived by honest dreams
Defend the bad against the worse."
-- Cecil Day-Lewis from Where Are The War Poets?
[Tip: Point cursor to any comment to see title of post being discussed.]
SEARCH THIS SITE
News & Media Links