Tuesday, September 6, 2011

Time Horizons: Stimulation Of Greater Length Required

Tyler Cowen:
For all the talk of a “large stimulus,” you don’t hear much about a “longer stimulus.”

FLG surmises that this is because the people who are in favor of the stimulus are, generally speaking, on the political left. And, as regular readers of this blog know, FLG asserts that these people have a personal discount rate. Thus, they are extremely short run oriented and the idea of a stimulus that tries to work over several years rather than fixing the problem RIGHT NOW is unappealing to them.

2 comments:

Andrew Stevens said...

The title of this post just cries out for a "that's what she said." I would also remark that this comment would never have occurred to me on anyone else's blog.

Galatea said...

"Stimulus" really implies "short-term", I think, given the 'shot in the arm' imagery that comes with. A "longer stimulus" would really be a "jobs program". A "new deal", if you will.

 
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