“..The Economy: Why We’re Stuck..”

“…Here are the facts of the economic case as I see them today:

- Much of Europe is in recession and the downturn is in no small part a function of austerity measures that like bloodletting -

- are making things worse not better.

While the new French president is certainly making the right sounds – it’s awfully hard to point to the actual implementation of helpful policy anywhere.

- The U.S. is doing better but we too are failing to enact measures that would finally release the economy from the residual gravitational pull of the Great Recession.

- The latter point is showing up in lots of worrisome places: the economy is slogging along at too slow a growth rate (around 2%); -

- the job market may be decelerating from an okay pace to a sub-par pace; -

- real paychecks are falling behind inflation.

All of which begs the question -

- why are advanced economies so seemingly immune to correct diagnosis and prescription?

Why are we applying leeches instead of the contemporary medicine of combined monetary and fiscal stimulus -

- in order to once and for all hit the escape velocity that’s eluded us thus far?

Here are some answers off the top of my head:..”

(cont..)

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Jared Bernstein: The Economy: Why We’re Stuck.

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