{"id":179,"date":"2010-11-01T10:55:09","date_gmt":"2010-11-01T17:55:09","guid":{"rendered":"http:\/\/www.halepassage.org\/?p=179"},"modified":"2010-11-01T10:55:09","modified_gmt":"2010-11-01T17:55:09","slug":"a-stimulus-must-be-above-a-threshold-to-work","status":"publish","type":"post","link":"http:\/\/www.halepassage.org\/?p=179","title":{"rendered":"A Stimulus must be above a threshold to work."},"content":{"rendered":"<p>This <a href=\"http:\/\/economistsview.typepad.com\/economistsview\/2010\/11\/the-stagnation-regime-of-the-new-keynesian-model-and-current-us-policy.html\" target=\"_blank\">paper<\/a>, from George Evans via Mark\u00c2\u00a0 Thoma (original <a href=\"http:\/\/pages.uoregon.edu\/gevans\/StickyStag30oct2010.pdf\" target=\"_blank\">here<\/a>), shows why fiscal stimulus must be greater than a threshold level to be able to kick an economy out of stagnation.\u00c2\u00a0 Obama&#8217;s stimulus was clearly too small.<\/p>\n<p>Mark Thoma:<\/p>\n<p style=\"padding-left: 30px;\"><em>&#8220;Escaping from the stagnation trap requires a change in  government  spending or some other shock of sufficient size. If the change in   government spending is large enough, the economy will return to  full  employment. But if the shock to government spending is below the  required  threshold (as the stimulus package may very well have been),  the economy will  remain trapped in the stagnation regime.&#8221;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This paper, from George Evans via Mark\u00c2\u00a0 Thoma (original here), shows why fiscal stimulus must be greater than a threshold level to be able to kick an economy out of stagnation.\u00c2\u00a0 Obama&#8217;s stimulus was clearly too small. Mark Thoma: &#8220;Escaping &hellip; <a href=\"http:\/\/www.halepassage.org\/?p=179\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-179","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/www.halepassage.org\/index.php?rest_route=\/wp\/v2\/posts\/179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.halepassage.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.halepassage.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.halepassage.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.halepassage.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=179"}],"version-history":[{"count":0,"href":"http:\/\/www.halepassage.org\/index.php?rest_route=\/wp\/v2\/posts\/179\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.halepassage.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.halepassage.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=179"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.halepassage.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}