In a September 15 commentary, University of Chicago economist Casey Mulligan examined the stimulative effect of the recent hiring of thousands of temporary Census workers. The apparent lack of any macroeconomic effect suggests a failure of the Keynesian model, he says.
Also on September 15, Columbia University economist Joseph Stiglitz published a commentary arguing that the design of a stimulus plan is as critical to its success as its size. Stimulus efforts should concentrate on maximizing bang-for-the-buck, he says.
On September 14, Macroeconomic Advisers published an estimate of the impact of the additional stimulus initiatives recently proposed by the Obama administration. It finds that there would be a small but positive impact on growth.
In a September 9 commentary, MIT economist Simon Johnson was highly critical of the Obama administration for timidity in putting forward additional stimulus measures.
In a September 8 commentary, University of Chicago economist Casey Mulligan was critical of the idea that war spending is effective at reducing unemployment.
In a September 7 commentary, Morgan Stanley economists Richard Berner and David Greenlaw estimated that allowing all expiring tax cuts to expire on schedule would reduce growth in 2011 by just 0.75 percent.
On September 3, University of California, Berkeley, economists Alan Auerbach and Yuriy Gorodnichenko published a commentary examining the output response to fiscal policy. It concludes that the size of the fiscal multiplier varies considerably over the business cycle.
In a September 2 commentary, University of California, Berkeley, economist Barry Eichengreen said that although there is a strong case for additional fiscal stimulus in both Europe and the U.S., the likelihood of such stimulus was very low. Hence, central banks will necessarily be forced to bear more of the burden of additional stimulus.
On September 1, University of Wisconsin economist Menzie Chinn was highly critical of an August 31 article by Heritage Foundation economist Brian Reidl arguing that the stimulus did not work. Chinn says that Reidl lacks any coherent theory to support his argument.
I last posted items on this topic on September 2.
Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Read his most recent column here. Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).
