Grasping Reality on TypePad, by Brad DeLong

Comment of the Day: Roger Farmer: Fed?!?!: "There is a third possibility...

...The only way to get out of the trap is to raise rates now and offset the contraction through simultaneous fiscal expansion: either through:

1. traditional infrastructure (I'm not a fan),
2. Helicopter drops (I'm more of a fan), or
3. Fed purchases of stocks.

I think that Miles Kimball's negative interest rates would also work--which would be not a fiscal but a monetary expansion in Roger's taxonomy...