UC Davis: Institute of Governmental Affairs : IGA: Stimulus SmackDown: Can Deficit Spending Save the Economy? A Debate Between Michele Boldrin, Joseph Gibson Hoyt Distinguished Professor in Arts & Sciences, Washington University in St. Louis, and J. Bradford DeLong, Professor of Economics, U.C Berkeley. March 4, 2009
It was very strange. Boldrin did not argue:
- that the stimulus would be ineffective and not boost employment and production,
- that the stimulus would produce an inflationary spiral because of domestic bottlenecks,
- that the stimulus would produce an inflationary spiral because it would induce a collapse of the dollar,
- that the stimulus would produce a recovery with too-low investment because government borrowing would raise interest rates,
- that the benefits of the stimulus would be outweighed by the long-run costs of servicing the added debt.
Instead, he argued that:
- the stimulus was a bad idea because the debate over it would distract political and policy attention from the most important task--fixing the banks.
Seems to me that if that is what is wrong with the stimulus, the best thing Professor Boldrin could do is support it: the more people support it, the quicker the debate is over, and the quicker we can focus 100% of our attention on fixing the banking system.
CPR: Programs | Insight: Stimulus Smackdown
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UC Davis: Institute of Governmental Affairs: Stimulus SmackDown: Can Deficit Spending Save the Economy?: When: March 04, 2009 from 06:00 pm to 08:00 pm. Where: University Club Lounge. Contact Name: Mary Davis. Contact Email: email@example.com: Contact Phone 752-5570.
A Debate Between Michele Boldrin, Washington University in St. Louis
J. Bradford DeLong, Professor of Economics, U.C Berkeley
Moderated by Gregory Clark, Professor and Chair, Department of Economics, University of California, Davis
With questions from an expert panel of UC Davis economists and audience Q&A.
Posted via email from http://braddelong.posterous.com/delong-deficit-spending-does-t at Brad DeLong's Scrapbook