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Bartenders would hate me

Summary:
Tyler Cowen directed me to this Adam Ozimek tweet: When fiscal stimulus is spent in the US then we can expect inflation to average 2% during the 2020s. If fiscal stimulus is spent overseas then we can expect inflation to average 2% during the 2020s. But interest rates in the US might be a tiny bit lower if the money is spent overseas. PS. My fellow economists might also find me to be highly annoying. Tags:

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Tyler Cowen directed me to this Adam Ozimek tweet:

Bartenders would hate me

When fiscal stimulus is spent in the US then we can expect inflation to average 2% during the 2020s. If fiscal stimulus is spent overseas then we can expect inflation to average 2% during the 2020s.

But interest rates in the US might be a tiny bit lower if the money is spent overseas.

PS. My fellow economists might also find me to be highly annoying.


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Scott Sumner
Scott B. Sumner is Research Fellow at the Independent Institute, the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University and an economist who teaches at Bentley University in Waltham, Massachusetts. His economics blog, The Money Illusion, popularized the idea of nominal GDP targeting, which says that the Fed should target nominal GDP—i.e., real GDP growth plus the rate of inflation—to better "induce the correct level of business investment".

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