fiscal policy

In an epic display of the more things change, the more they stay the same Paul Ryan is unhappy with the process of fiscal policy under his own leadership. I will wait to comment on the legislation more fully when the votes are in (what the end passing coalition looks like may be the most interesting part of this). With this policy we essentially put in place tax cuts and spending increases, so something for both parties to celebrate or at least sell as a victory. Of course it is fiscally irresponsible and leads me to the generic comment I want to make: fiscal policy is not working. As much as people (in and out of government) want to take aim at the Fed, their policy decisions can be justified as following a defined approach to policy and the world.

Continue reading Reaffirming the Impotence of the Fiscal Policy Process

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I think we should expect a government shutdown. When you read the stances of the different leaders, and believe me I use the term loosely, it seems unlikely there will be any common ground found soon. One case is particular I will bring up is Harry Reid. As I look at the situation he faces I see little reason for him to soften his stance from a game theoretic perspective.

Continue reading Why we should expect a shutdown

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