Understanding Martin Feldstein's Econ 2010c Lecture 34 Years Late: "Light Dawns in Marblehead" Weblogging...
Christopher A. Sims: Bayesian Methods in Applied Econometrics, or, Why Econometrics Should Always and Everywhere Be Bayesian: Noted

Why Are We Doing This?: Fiscal Policy Edition

FRED Graph St Louis Fed 10

[Sarcasm]Yes, I know: "small businesses and families are tightening their belts. Their government should, too".

Deficit spending leads to national default. More debt means rising expectations of inflation, and so the Federal Reserve has to tighten and raise unemployment above the natural rate in order to hit its inflation target once inflation expectations have become de-anchored due to high debt.