Between finals, grading, and buying the house (closed yesterday afternoon - I'm a homeowner!) I haven't had time to read closely.
I did get a fairly close read of Bill Woolsey's post. My reaction to that was:
1. Right, that's pretty much what Krugman said about monetary policy in a liquidity trap in the 90s - so, as I suspected, there's not much difference between Sumner and Keynesians.
2. The points about raising real interest rates is not a concern for us if its done as a result of increased output (that's the whole point!), and Bill's switch from moving the LM curve to moving the IS curve is precisely why we think fiscal policy is a good idea (because it guarantees we're working through more than just the interest rate mechanism).
But I read quickly so I may be missing the point that they were getting excited about - anyone have any thoughts?
Lehman Brothers Once Again...
12 minutes ago