By the way, it should be said, going back to the Krugman/Ferguson argument, that if Krugman has been right about rates, I'm right about fiscal policy, because the U.S. is doing pretty much what Britain did, but later. In other words, it is on the path to reduce its deficit and it doesn't really matter who's President, that's going to happen. And the U.K. is doing a combination fiscal stabilization and monetary stimulus. I think that will be the U.S. recipe too. It's not a recipe for rapid growth, mind you. But it's certainly preferable to the European option or the Japanese option.
By the way, it should be said, going back to the Krugman/Ferguson argument, that if Krugman has been right about rates, I'm right about fiscal policy, because the U.S. is doing pretty much what Britain did, but later. In other words, it is on the path to reduce its deficit and it doesn't really matter who's President, that's going to happen. And the U.K. is doing a combination fiscal stabilization and monetary stimulus. I think that will be the U.S. recipe too. It's not a recipe for rapid growth, mind you. But it's certainly preferable to the European option or the Japanese option.
