Menzie Chin has some hair curling charts and commentary – his point being that the huge “stimulus” plan may not be so huge in the context of the meltdown.
Here are the latest CBO forecasts of the output gap and unemployment rate, as well as counterfactual gap and rate that would have taken place in the absence of the stimulus package.
[From The Stimulus Package Considered against a Deteriorating Macro Backdrop]
I agree with Chin’s magnitude thesis. I still think the HR1 bill was typical Congressional sausage — late, poorly targeted, horribly inefficient.
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