My advice to Team Obama: Do not be intellectually bound by the textbook Keynesian model. Be prepared to recognize that the world is vastly more complicated than the one we describe in econ 101. In particular, empirical studies that do not impose the restrictions of Keynesian theory suggest that you might get more bang for the buck with tax cuts than spending hikes.
Wednesday, January 21, 2009
Hopefully, Obama will be open to Harvard economist Greg Mankiw's advice (HT: Instapundit):