Dear Conservative, (Update)
(This was a crappy post and so I want to re-write it.)
I am baffled by the Republican (your) response to this recession. The economic data tells us that fiscal stimulus is the only solution. We are up against the zero bound for interest rates, rendering monetary fixes useless (unless we change inflation expectations, which isn't going to happen and why QE2 was so ineffective).
So explain to me why another stimulus is a bad idea. Either you don't think government should do anything (which puts you farther right than Greenspan and Bernake) or you only support monetary policy and so are okay with ineffective policy and ultimately a lasting recession.
Maybe you don’t feel quite prepared to talk about this; that you aren’t that well versed on economics - specifically liquidity traps - and so for now you trust your party. Fine. Let’s do this. We’ll read two books. One by liberal Paul Krugman. The other by Fed Chairman (appointed by George W. Bush) Ben Bernake. Deal?
