Fiscal policy has moved off the front pages. That’s both good and bad news. The good news is a growing confidence that the next round of fiscal cliffs will be navigated without disruption to the economy. The bad news is a rising pessimism about the prospect for a fiscal grand bargain that addresses the long-term drivers of our deficit. Several factors appear to be at play:
How does the attack on the two academic’s work change the landscape for macro policy, if at all?