Quote of the Day: February 4, 2012
The "Old Keynesian" Explanation of Why the Economy Eventually Recovers on Its Own From a Slump

Department of "Huh!?!?!?!?!?"

Tyler Cowen:

The new jobs report: The “big loser” here?: Old Keynesianism.  You really can get a recovery when the real shocks are moderately positive.  You will note, as we have been told many many times by many many sources, fiscal and monetary policy have not been extremely pro-active in recent times; in fact the stimulus has been trickling to a close. The big winners, apart from the American public?: real business cycle theory.  It is part of any cyclical explanation, whether one likes it or not.