Liveblogging Olivier Blanchard: The Global Outlook and Risks
No. Mitt Romney Has Not a Single Policy. Why Do You Ask?

A Question for Olivier Blanchard...

I will not ask you to agree with Lawrence Summers and myself, and to distinguish sharply between the fiscal policies appropriate for typical countries and the policies appropriate for those countries that can borrow on a large scale at negative real interest rates…

But I will question your claim that U.S. financial markets appear relatively healthy on an interest rate-spread metric. When I look at the U.S. housing market, I find myself thinking about those overcomplicated Stiglitzian credit-rationing models that you annoyed me by making me learn, that I thought were too clever to be true, and thinking they might be true after all--and that housing finance might somehow be experiencing market failure on a large scale without it showing up as large interest rate spreads…

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