Assorted links
1. Measuring the output gap, an excellent post looking at capacity utilitzation and changes in inflation rates to back out an answer to this question. The bottom line is that the output gap probably isn't nearly as large as is often claimed. And Karl Smith comments, I would note the connection between the ppf and trust.
2. Obama's hardline turn against medical marijuana.
3. Markets between everything and everyone, and Literary Saloon reviews Allan Meltzer.
4. Testing Milton Friedman, new TV show with Caplan, Yglesias, Dalmia, Williams, others.
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