Saturday, November 6, 2010

Keynesian policy of increasing G?

Krugman compares the fiscal policies of Germany and the U.S.
One comment: As Krugman claims, many of the transfer payments are from the federal to state and local gov't. However, there is also a large component of government to private transfer payments, especially in line with the current crisis. Whether or not this was in response to the crisis is not yet obvious, but we should also take a deeper look into this channel.

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