Saturday, August 20, 2011

Fringe Views

It really doesn't matter all that much whether the economy, according to somewhat arbitrary criteria, has another "recession." I think the true fringe view, where fringe means outside the Village, is that unending 9.0%+ unemployment is horrible and requires an appropriate policy response. The point is we never got out of the last recession, and whether GDP growth is barely positive or barely negative doesn't matter all that much.