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.

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: