Thursday, August 11, 2011

Bill Gross Gets It — Sort Of

The president and Congress must recognize that an AA-plus country, to remain AA-plus, must focus on growth, not debt reduction, in the short term. We have a debt problem — but primarily a crisis of aggregate demand. A 21st-century Keynes would have recognized this and sounded the alarm, pointing out that policymakers from a fiscal perspective are pointing us toward recession and the destructive 1930s instead of a low-growth but still breathing U.S. economy of the 21st century.
[emphasis added]

Ok, he's a deficit dove, but he gets it that "It's the demand, stupid." At least that is an improvement over his recent commets. Seems like he has recovered himself.

1 comment:

John Zelnicker said...

I think his recovery has a long, long way to go.