An illustrative example of the problem of our government; no grownups.
The problem is that the other half of our policy regime is not run by grown-ups.� So Bernanke is forced to talk to Congress in much the same way I used to talk to my daughter about the tooth fairy.� He can’t simply go to Congress and lay “the facts of life” out on the table, because they can’t handle the truth.� They aren’t mentally equipped to deal with the reality that fiscal and monetary stimulus are two ways to boost AD, and if they do more the Fed will probably do less.�
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