Comment on There is no fiscal crisis. And macroeconomics is not a morality play.

There is no fiscal crisis. And macroeconomics is not a morality play.

Two separate events from the last few days, on two different continents: In the United States, a messy series of negotiations over how to avert the fiscal cliff and bring down the nation's large budget deficits seemed to be heading nowhere. In Japan, a land of the largest public debt in the world relative to the size of its economy, a new government was elected pledging to pressure the nation's central bank to inflate the money supply much more.

 

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