This post title is misleading, but I couldn’t think of anything wittier. Scott Sumner calmly discusses reflections from Miles Kimball and says this:
In another paper, Kimball spells out the credit policy in more detail. It might involve the government giving each American a credit card with a $2000 credit limit. This is certainly better than fiscal stimulus, but still falls far short of the efficiency of monetary stimulus.
Now to be fair, Scott classifies this idea as “the bad,” while level targeting of NGDP is “the good” and fiscal policy is “the ugly.” Still, when somebody discusses the idea of the government giving each American a credit card with a $2000 limit, I think this is the only permissible reaction.
