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View Diary: There is NO fiscal cliff. (69 comments)

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  •  Wray never (7+ / 0-)

    gives the impression that spending does not matter.  In fact, he goes out of his way to stress just the opposite.  What he does say is government has the fiscal ability and responsibility to spend exactly what is needed to achieve full employment and price stability, and that deficits or surpluses are nothing more than a part of the outcome of achieving that goal and responsibility--a deficit or surplus objective is a meaningless economic goal and will only promote disaster.  The goal of economic policy is to promote employment and growth not to meet some meaningless fiscal objective.  If the economy needs stimulus to promote growth and stabilize inflation, then a deficit outcome is great.  If the economy is growing to fast with inflation, then a surplus might be in order.  It's the economy, not the balance sheet, that matters.

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