I have a new column up at the Fiscal Times:
Insulating Fiscal Policy from a Dysfunctional Congress: The economic crisis has made two things clear. First, monetary policy won’t always be capable of stabilizing the economy on its own. When the problems become large enough, fiscal policy must be part of the response.
Second, even when our economic problems are severe and righting the ship ought to be the primary concern, Congress is incapable of implementing fiscal policy with the timeliness and effectiveness that is needed. As Alan Blinder said recently, “I’m looking at the political system turning itself into a paralyzed beast.” ... [...continue reading...]
Is there a way around this problem?