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October 12, 2012


Yet another Chris

Surely multipliers to the problems of the likes of Greece and Spain, or even the UK. Consider Greece. Okay, so the government continuing to spend might have improved growth prospects. But to continue spending, the Greek government would have to borrow money. The markets would not lend. There is a big difference between theory and the real world.

Frances Coppola

Economics can only be like physics to the extent either that it directly relates to the physical world or that it is an image of the physical world. The more economics concentrates on money (which is only a symbol) and ignores real products, the less like physics it becomes. Unless physics is doing the same, of course - confusing the symbol with the real thing.


Delong and Krugman have been saying the same thing, but it helps to come at it from a new direction as you have done. Bravo!

@Yet another Chris-
Greece can't borrow, but ECB can.
Stockton, California can't borrow, but US Treasury could, if GOP didn't block all constructive efforts.


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