John H. Cochrane

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Understanding fiscal and monetary policy in the great recession: Some unpleasant fiscal arithmetic

European Economic Review 55 2-30 ScienceDirect Link
Why there was a big recession; will we face inflation or deflation, can the Fed do anything about it in the face of looming deficits? This is a longer article, expanding on themes below and making some of the arguments precise, with a few equations. Yes, fiscal stimulus is possible..(a teaser)

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