1 Big Thing: macro policy is getting it all wrong
Today's lead topic is pulling from multiple threads from the last twenty-four hours. And the gist of those threads is that policy makers have got it all wrong when it comes to macro. Yesterday, in the daily I touched on this theme with the economists' prediction that Fed policy would be the genesis of the next downturn. But here are a few more threads, both forward and backward-looking.
The first one is on the last recession. And here's the part that best highlights the premise:
More clues that Alesina, Ardagna, Reinhart, and Rogoff got everything wrong can be found in the real world, where the Obama administration's modest stimulus package, while too small to fix the Great Recession entirely, did make things much better. Conversely, the E...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.