New York Times (October 11)
The Times applauds economists Christopher Sims and Thomas Sargent, who were awarded the 2011 Nobel in economic sciences. “The prize committee has rewarded two towering intellects—and delivered a challenge to politicians who are driven more by ideology than by serious consideration of the real-world consequences of their actions.” In particular, the Times hopes politicians will recognize “two important approaches: near-term public spending to spur jobs paired with tax increases to pay for the new programs and, eventually, to reduce the deficit.”
Financial Times (September 6)
The U.S. is not “going the way of Japan,” according to Paul Sheard global chief economist at Nomura. There are similarities, both nations had massive asset bubbles, but “a series of policy errors” led to Japan’s lost decades. “Inflation and deflation are, at the end of the day, policy choices. US policymakers, by and large, have learnt the lessons from the policy mistakes of Japan and have applied them, so far reasonably successfully.”
