Irrational Exuberance Over the Balanced Budget Multiplier

Christmas time is the most magical time of the year. A time to believe in elves, talking reindeer, snowmen running amok, and…for some economists, the Keynesian cross. The Keynesian cross. We (the economics profession) like to etch it deeply into the minds of fresh undergraduates, one cohort after another. Is it any surprise that for most [...]