
Lessons from Tyler
At an Economist roundtable, Tyler Cowen makes a bold suggestion: First, to the extent that the real problem is fear, this militates in favour of placebo policies. By that I mean initiatives which appear bold and have great symbolic value, but which don’t necessarily cost us very much. I haven’t seen us make a major attempt to identify such proposals, but it is unlikely that an $800 billion stimulus fits the bill…The reality is that we don’t actually know what will work, precisely because the problem goes beyond just stimulating aggregate demand. I’m no expert on these matters but this seems plausible to me. And he also has this effective