"... some people find this hard to understand — perhaps because they don’t want to understand — but people like me have never claimed that fiscal expansion is always and everywhere the right policy, even in response to recession."
pk what about the automatic stablizers ?? that's fiscal side macro no ??
are they always by divine providence just right in their contribution to counter cyclical policy ??
" Nor are other arguments, like the argument that falling wages reduce, not increase, unemployment, universal."
this covers a multitude of graces and sins eh ??
" All of the unorthodox policy recommendations and conclusions are contingent on the economy being in a liquidity trap in which short-run nominal interest rates are up against the zero lower bound and can’t go lower."
in other words if loans could have payment schedules that could be arbitrarily lower then full nominal pay back ...
corporate and household spending could never get hung up on some credit rationing reef like its on now ??
amazing
no trade gap constraints ...no bop issues ..nothing a high enough negative real rate couldn't fix
" liquidity-trap conditions are rare; in fact, they’ve only happened twice in US history. Unfortunately, we’re living in one of those episodes right now."
double amazing
only twice would classic keynes be applicable
yikes what a horror he's reverting to neo liberalism's use the policy rate its the nutz
for all "normal " macro driving conditions
like the entire interval between 1946 thru 2007
