Sunday, January 11, 2009

Good News and Bad News

The good news is that somebody agrees with RD that:

...mathematics is the only true science - and you can't twist it, no matter how hard you try.
Unfortunately, that same somebody is reporting that "N" (monetary velocity) has dipped below 1. Apparently (and if sustained) that means that Ben Bernanke's helicopters are grounded...

Oh, and the 'Bama plan seems to be a bit, shall we say, optimistic:
We considered multipliers for the case where the federal funds rate remains constant, rather than the usual case where the Federal Reserve raises the funds rate in response to fiscal expansion, on the grounds that the funds rate is likely to be at or near its lower bound of zero for the foreseeable future.


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