Saturday, January 17, 2009

The latest disinformation from Mankiw

Greg Mankiw continues his disinformation campaign for the Republican Party with this: "among academics over the last 30 years, the idea of fiscal stimulus has been discredited". If this is true then why do the vast majority of academics appear to support it including some of the fields most respected, like Nobel Prize winners Paul Krugman, Joseph Stiglitz, Robert Solow, Lawrence Klein, and 7 other Nobel Prize winning economists, along with 450 others including many of the top in the field who signed a letter against the 2003 Bush tax cuts stating, "To be effective, a stimulus plan should rely on immediate but temporary spending and tax measures to expand demand, and it should also rely on immediate but temporary incentives for investment."

I don't see how fiscal stimulus can be discredited and supported by most of the fields top economists at the same time.