Monday, March 9, 2009

Mankiw Continues to Pound on Keynes

This time he quotes a new research study. The study says the multplier is much smaller than previoulsy believed.

Since there is no multiplier, Mankiw has a ways to go to understand how the economy works, but he obviously senses there is a problem with Keynesian models. For a Harvard prof, this is a big step.

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