Thursday, August 13, 2009

What will stop the recession?

A few days ago Carpe Diem had a post on two views of what is bringing us out of recession. One view said it was the self-stabilizing nature of markets aided by massive Federal Reserve action, the other argued big government, especially automatic fiscal stabilizers. One of the weaknesses of macroeconomics is that it is so hard to test different theories.

I could not resist the temptation to add a couple comments, but forgot that the word "data" is plural.

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