Wednesday, January 7, 2009
A dissenting view
Casey Mulligan offers a dissenting view on the current financial crisis and recession, arguing that the problems have been grossly overhyped. He makes the comparison to the Weapons of Mass Destruction (WMD) story in Iraq, a fear the prompted action that never would have been taken otherwise. He says that the fear of economic catastrophe has driven policy, but as in the case of WMD, there is little evidence that the fear is justified. He even suggests that GDP in the fourth quarter may increase. Check out his blog.