Sentence of the day
People it comes from Joe Stiglitz and it's a doozy:
"If my Cassandra forecast turns out to be wrong, stimulus can be cut."
The source is the FT, but I've already hit my quota there so here's a link from Mark Thoma.
Is he saying there already is stimulus in place now that we have the option of cutting?
Is he implicitly proposing some vague new conditional stimulus?
Is he an expert at putting toothpaste back into the tube?
If you put a stimulus in place and things started going well, wouldn't you shy away from cutting back on the announced stimulus for fear of mucking up the recovery?
UPDATE: this post was edited to remedy my severe lack of reading comprehension this morning. Thanks to Mark Thoma for setting me straight.