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cgod · 4957 days ago · link · · parent · post: Brad DeLong: The Sorrow and the Pity of Another Liquidity Trap
All the periods of prolonged economic growth in the United States were accompanied by the government borrowing and spending increases. The fabled crowding out effect never occurred in any of these periods of expansion. Often the yield that the government had to pay to borrow remained realitivly low. There isn't a great theoretical explanation for this except that crowding out is mere peasant lore econ. but crowding out is still held to like cannon.