Carmen Reinhart and Kenneth Rogoff
Their research provided the main intellectual underpinnings of the austerity policies that followed and are now widely thought to have done more harm than good.
Following the coronavirus pandemic, policy makers are leaning hard on the work of Olivier Blanchard and Lawrence Summers, who have argued that low interest rates increase the scope for fiscal policy and larger deficits can actually help solve our economic woes. Their theory helped inspire Joe Biden’s $1.9 trillion stimulus package for the US economy.
This week Blanchard tweeted that Biden’s plan reminded him of the snake that swallowed an elephant in Le Petit Prince by /French aristocrat, writer, and aviator/ de Saint-Exupéry. “The snake was too ambitious,” wrote the former chief economist of the IMF. “The elephant will pass, but maybe with some damage.”
Ben Wright Telegraph 10 March 2021
https://www.telegraph.co.uk/business/2021/03/10/crack-dam-holding-back-next-economic-crisis/
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