Liveblogging World War II: February 19, 1942
Harold Pollack: Santorum Is Not Funny

Yes, Fiscal Policy Is Effective

Olivier Blanchard:

If one believes that aggregate demand determines output in the short run, which most of us do, that aggregate demand is C + I + G + NX, which most of us do, that Ricardian equivalence does not hold, which most of us do, and that we stay away from high deficits and high debt environments in which many things can go wrong, then it is very difficult to see how a decrease in taxes or an increase in spending would not lead to an increase in output.