Sunday, June 29, 2008

Fiscal Stimulus, Part Deux

Will we get a second fiscal stimulus package? The first stimulus package seems to have worked better than most experts anticipated, and with the economy still deteriorating, the idea of a second fiscal stimulus package seems to be gaining support. Robert Shiller called for a second stimulus package in today's NYT; Larry Summers does the same in his monthly FT op-ed tomorrow; and Robert Reich joins the chorus on his blog. And, of course, Barack Obama is now calling for a second stimulus package. I've seen this movie many times before, and I think the chances for a second stimulus package are now probably greater than 50-50.


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