Romer was pushing a $1.8 trillion stimulus. I have to say, since I first became familiar with the name "Christina Romer", almost everything I've heard since then has improved my view of her. And it's not just "she wanted a huge stimulus". It's her work on economic history - the 1920-1921 depression particularly. She approached her multiplier estimate work with a labor economist's attention to identification concerns (contrary to some peoples' suspicions, my economics is evidence-based, not ideology-based). And then, of course, she's a W&M alum.
One thing I'll give Larry Summers is that he's probably right about the politics of a stimulus that size. There is a great deal of truth to the idea that none of this talk is worth a damn if we can't actually pass something. But I would not have erred on the side of political expediency on this one.
Noted for May 18, 2013
5 hours ago