The Counterrevolution in Economics: A Reading List
The failure of the Obama stimulus plan has sparked some great new economic thinking. As the pseudo-Keynesians continue their call for ever-larger stimulus, a smaller cohort of writers is suggesting counterproposals. Be sure to read:
The moribund economy is the product of a failed liberal theory. If only the Obama team had read (and listened to!) "The Stimulus Trap" last January. A lot of this might have been avoided.
A postscript: Looking over that piece a year and a half later, I am less convinced that monetary policy has done all it can do. It worries me when I hear that the money supply may be contracting and that a lot of the liquidity the Fed injected into the banks is just sitting there. We need to get that money moving, by creating a predictable business environment conducive to risk-taking and investment.