Monday, May 09, 2011

Krugman Quip

The latest -- from his blog post, VSP Economics -- is about a recent WaPo editorial:

... the WaPo editorial tries to have it both ways. Monetary and fiscal stimulus “kept unemployment from rising out of control” — but somehow doing any more of the same would be disastrous. I guess we’re supposed to believe that there’s some kind of nonlinearity that makes exactly the amount of stimulus we’ve already done a positive, but any slight further stimulus very negative. It would be interesting to think of what kind of model could generate that result.

But I’m joking, of course. There is no model, just the unwisdom of the in-crowd. [My emphasis.]