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Politics : The Castle -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (6112)	3/28/2012 7:33:27 PM
From: TimF	1 Recommendation Respond to of 7936

The Bank of England means monetary policy, while some conservatives are ultra-inflation hawks, adding aditional stimulus through monetary policy is a very different situation than wasteing a lot of money through fiscal stimulus. At the right time, and done in measured doses, monetary stimulus can make sense. In any case calling the government in London (or DC for that matter) conservative (presumably in a fiscal sense since your talking about money), is rather silly.

To: tejek who wrote (6112)	5/16/2012 11:41:18 PM
From: TimF	1 Recommendation Read Replies (1) \| Respond to of 7936

OMG, Austerity! May 14, 2012, 8:59 am via here The UK line is particularly interesting, since that is the country that Krugman has declared is austerity-izing itself into a depression. As I have pointed out before, real government spending in UK has been and is still rising. The percent of GDP of this spending has fallen a bit, but there is nothing about Keynesian stimulus theory that says changes in the percentage of government spending is stimulative, only its absolute value. Here is one thing I would love to here Krugman et. al. opine on — at what percentage of government debt to GDP does additional deficit spending become counter-stimulative. I imagine there is an inverse relationship for deficit-funded stimulus, such that it has a larger effect at lower debt levels with a zero to negative effect at higher interest levels. Update: From another source, here is the UK in real $ coyoteblog.com