What’s striking here is that fiscal stimulus is a small player. It would be even smaller if one took into account the fact that stimulus has made economies stronger than they would otherwise have been, leading to higher revenues and smaller unemployment benefits.
What dominates the picture instead is the consequences of the slump, in falling revenues and higher social insurance payments...
Tuesday, May 4, 2010
IMF on his blog today. It clearly shows why today's manic right-wing opposition to government stimulus in the midst of a deep recession is irrational:
Posted by Jotman on Tuesday, May 04, 2010