In reading about Bernanke's testimony, I was struck by the statement $100 billion might provide a $60 billion stimulus during the later part of 2009. And then no one mentioned policy lags except Krugman:
Right now, Mr. Bernanke is in crisis-management mode, trying to deal with the mess his predecessor left behind. I don’t have any problems with his testimony yesterday, although I suspect that it’s already too late to prevent a recession.
And in the later part of 2009 we're likely out of recession and the politically-driven 2008 stimulus might be inflationary. Or something like that.
And is Krugman confusing slow growth with a recession? If it "feels weak" is an economy weak? Or recovering slowly? Should slow growth get a stimulus package? Why do fish jump out of the water?
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