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August 15, 2009

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Next time I'll put on some lederhose and sing "Adelvice". That should shatter the Captain Von Trapp illusions most thoroughly..

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Keynesian stimulus can fail in many ways. Becker notes that it is usually late. Posner suggests that it doesn't have to be late, but it should be better designed. Both the timing and the design failures, however, derive from the political nature of any large special stimulus. Becker seems closer to the point. Whether its late our designed with an eye to political favorites, stimuli passed by legislatures are bound to be economically inefficient.

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