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Who's the 'we' that Greg Mankiw (and you?) thinks need to figure out the consequences of any policy before it should be pursued? If we're waiting for economists to agree on it we could be waiting a long or indeed infinite time.


Policymakers - if there's no rationale for understanding the likely effects of a policy then what's to say it won't cause more harm than good?


QE, is only an option for countries who have fixed the roof while the sun shines. Given the state of the UK finances prior to Lehman's crash, we were in no position to start printing money.


AJE - agreed.


Clare - are you George Osbourne's speech writer?


Jim - Wow. Am I supposed to stop blogging now?(!)


Well I never said I agreed with everything else you said, but yes, we should cherish this moment :)

Sarah Danes

nice post...
i really like this...



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I feel that the Bank of England has done too much; and of the wrong sort; and thus the readjustment process required to renew the economy is not happening.

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