Thursday, January 17, 2008

Bernanke Not Nuts

To elaborate a bit, Bernanke's basically saying-without-quite-saying that any stimulus package that Congress passes shouldn't include making permanent the Bush tax cuts. He's not taking a stand on the tax cuts per se, but instead saying that whether or not it's a good idea is a separate issue from any short term stimulus package. They're two different issues - short term stimulus and long run structural - and they should be seen as such.