Take the time to read this 27 page summary of the discussion of 4 prominent economists with regard to the appropriate responses to the economic problems to the world economies at present, and what they have learned since the GFC. Three thoughts come to mind following my review of this article:

1. Thanks for the internet. I am grateful each and every day that I have access in nearly real time to the output of really great researchers and thinkers that would be unimaginable. I am still very disappointed that I never had the opportunity to go to UC San Diago, Princeton or someplace like that, but having access to the information coming of of these places through the internet really is almost like being there.

2. I found myself laughing out loud 3 times in the reading. Maybe this shouldn’t be as surprising to me as it is. These are smart people, and the basis of humour is intelligence, and making a point through humour is an effective way to make an argument. But getting a good laugh 3 times in a 27 page summary of the deliberations of a conference on macroeconomics was a pleasant surprise.

3. I think that Valerie Ramey may be on to something truly insightful through her studies. What if the US is being significantly hindered in its ability to come out of the recession caused by the GFC due to aggregate demand loss caused by a combination of the inefficiency of its private health system in conjunction with the behavioural response of people to the shock of the GFC (e.g. spending less, saving more and preparing for things to get worse rather than better). What if they are really willing to take less and be less mobile in their employment decisions due to the fear over loss of health care coverage? Isn’t structural reform of health care in the US (particularly a single payer system) then one of the best things that could be done with respect to stimulus OR efficiency, whether you are a salt water or freshwater economist?