Must-Read: Paul Krugman: Multipliers and Reality: “When Bernstein and Romer assumed that [the fiscal multiplier] was 1.5, Robert Lucas accused them of ‘shlock economics‘… …and smeared Romer’s professional ethics. Since then there has been quite a lot of empirical work, which generally indicates a multiplier of about… 1.5. Now… Simon Wren-Lewis and Robert Waldmann raise… … Continue reading Must-Read: Paul Krugman: Multipliers and Reality