Whenever I fear that my well of inspiration for this blog might run dry, my neoclassical mates rush to the rescue with some priceless pearl of wisdom that simply demands a rejoinder. They are the Abbotts to my Costello (and I’m not talking Australian politics here – though the Tony and Julia show reached truly great heights with Gillard’s recent brilliant oratory on misogyny).
Today’s helping hand was a comment from French economist Olivier Blanchard. He qualifies as a serial offender on the comic statements front, since when wearing the hat of founding editor of the American Economic Review: Macroeconomics, he uttered the now immortal line that “the state of macro [economic theory] is good” – one year and six days after the financial crisis began.
He was the chief economist for the IMF prior to that gig, and he subsequently returned to the IMF, where he now has the curious title of “economic counsellor” (now there’s another potential gag, but I digress).
While delivering the baleful news in the latest IMF World Economic Outlook that the global economy is slowing, Olivier noted that:
“In most countries, fiscal consolidation is proceeding according to plan.”
“According to plan?” Well, yes, if the plan is to inspire the rise of fascist dictatorships in southern Europe, I suppose you could say that.
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