Tyler Cowen discusses the idea that we should borrow a lot of money and spend it right now because real interest rates are so low. He goes through the political economy of deciding how the money is spent. Me, I'd like to know what revealed preference looks like: how many of the people advocating this have obtained the maximum amount of money possible on 0% financing, or bought enormous houses with balloon mortgages, because money is so cheap right now? If not, why not? Does this have implications for our national strategy?
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