Friday, April 06, 2007

I Trust Bruce Bartlett Understands Crowding-out

Bruce’s contention that a mix of tight money and easy fiscal policy is good for long-term growth is relevant today as the Federal Reserve increased interest rates as the economy got closer to full employment. But this strikes me as absurd as it appears to be saying lower national savings and higher interest rates somehow encourages growth. Bruce should go revisit the Solow growth model if he believes this...more>>