The Fiscal Stimulus and Market Turnaround: 5-Year Anniversary

Commentators are taking note of the five-year anniversary of the fiscal stimulus that President Obama enacted during his first month in office. Those who don’t like Obama are still asking “if the fiscal stimulus was so great, why didn’t it work?”

Putting the ‘F’ Back in Federal Reserve

Age of Wisdom, Age of Foolishness (15) Written by Adam Whitehead, KeySignals.com They’re back and this time it’s for real!!! Regular readers of the funny papers will be familiar with the following cover page from, the day in September 2013, when President Putin and Janet Yellen joined the Committee to Save the World.

Austerity and Stupidity

oday’s austerity, many argue, is stupid. This column argues that today’s EZ austerity may arise from stupidity before the crisis – specifically lacklustre structural reform. Excess debt arose in nations maintaining unsustainable living standards and welfare systems in the face of poor growth. The Crisis forced radical adjustments such as austerity in a recession.

On Whose Research Is the Case for Austerity Mistakenly Based?

by Jeffrey Frankel, Jeff Frankel’s Weblog Several of my colleagues on the Harvard faculty have recently been casualties in the cross-fire between fiscal austerians and stimulators. Economists Carmen Reinhart and Ken Rogoff have received an unbelievable amount of press attention, ever since they were discovered by three researchers at the University of Massachusetts to have …

Self-defeating Austerity Shocks

by Reda Cherif and Fuad Hasanov, Voxeu.org This article was originally published by Voxeu.org (May 3, 2013) Europe’s austerity-first approach has triggered research-based efforts to evaluate the effectiveness of debt-reduction strategies. This column, based on a US empirical study, suggests that an ‘austerity shock’ in a weak economy may be self-defeating. Public-debt reduction historically occurs …