It would be a drastic political change because this monetary standard makes the government's fiscal errors instantly visible.
He and his advisers were fully prepared for a sharp recession as the necessary price that had to be paid for the monetary and fiscal errors of the past.
By reinsuring more mortgages, the government would take on more risk, but the bean-counters at the Congressional Budget Office (CBO) put the explicit subsidy at about $1.7 billion over five years a fiscal rounding error rather than a reckless handout.
Even if local debts are understated, China has fiscal room for error.
Major fiscal and monetary errors based on bad economic ideas are to blame.
Contrast Japan, which had numerous fiscal-stimulus packages in the 1990s, but failed to emerge from its slump until its debt problem was finally dealt with, with South Korea in 1997, which spent 13% of GDP on a large, speedy bank-rescue package.The fiscal costs of that error can be enormous.
On 5 January 2013, I headlined, at businessinsider, "The IMF Admits It Was Wrong About Keynesianism," and I linked there to the new "IMF Working Paper" from their chief economist Olivier Blanchard with Daniel Leigh, titled "Growth Forecast Errors and Fiscal Multipliers".
And his addiction to government spending alienated fiscal conservatives.Mr Bush's Republicans also made serious policy errors.
In requesting $87 billion from Congress for next year to keep trying to stabilize Iraq and get a start on reconstruction, President Bush has acknowledged the error, setting off fiscal and political aftershocks that could be substantial.
Their manifesto discusses what Krugman believes are the errors of recent fiscal policies and offers points of clarification regarding the economic crisis, including its causes, nature and appropriate responses.
