A new economic theoryMy point, with tongue buried in cheek, is that bureaucrats and politicians have got to think we are fools if their "stimulate me with my own money" policy is to work.
SIR – So those who argue against an economic stimulus have raised “the doctrine of Ricardian equivalence”. Governments around the world are borrowing from the future and debasing their money as they attempt to thwart the business cycle. Given that this strategy requires a rather myopic population of taxpayers and investors, perhaps the more appropriate description for the trade-off between fiscal and monetary tools would be “Retardian equivalence.”
So far, we do not appear to be fools. Hence the failure of the stimulus. Such a pity. For us.
Hattip to DL