Economic Stimulus (IMF Insights)

Blinder and Zandi via F&D just published some insights on the effects of the fiscal stimulus provided by the Obama administration as a response to the crisis. They underline the relative success of the stimulus by showing that things would be a lot worse without the intervention.

Unemployment and stimuli

Nevertheless, the Obama administration gets a midterm election fiasco, because the people are, understandably, not pleased by the economic stituation yet.

That sounds quite unfair to me, because now people vote for the other guys, who would have preferred to take the dark red line which you see on the chart.

But at least we can take comfort from two thing:

1) At least there’s an explanation for the mess we’re in (provided by a hobby political scientist).

2) It looks like, an important supranational institution is recently ruled by ‘demand guys’.
That does not mean that IMF’s “intellectual godfather” can stop turning over in his grave. But he can, at least, slow down the rotation speed a bit.

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