"Sargent's discoveries in particular echo the rationale Republican leaders in Congress have presented in opposing the massive Democratic stimulus spending during the first two years of the Obama administration — that such spending seeks to give the economy nothing more than what House Budget Chairman Rep. Paul Ryan over the weekend aptly called a "sugar high."
As the New York Sun pointed out Monday, Sargent has also criticized Obama's stimulus policies specifically. It pointed to an interview a year ago in which he called the calculations of the Obama Council of Economic Advisers "surprisingly naive for 2009."
Sargent was one of our school's teachers (he was a visiting lecture when I was there - and later came to teach full-time).
To state the problem simply - economic systems are 4 dimensional systems (they operate over time). However, government policy tries to manage economic activity with 2 and 3 dimensional models.
While fighting current inflation with tight monetary policy works temporarily, it eventually leads to higher inflation.
