How Is It That We Have Lost the Argument?

Martin Wolf:

Why it is right for central banks to keep printing: Confronted with huge fiscal deficits, many have concluded that they should hurry fiscal tightening on as fast as possible, in the hope that it will prove expansionary. What are the chances that they will be right? Small, I believe.... [A:]las, many “sound” people prefer orthodox recessions to unorthodox recoveries.

Why might a sharp structural fiscal tightening promote recovery?... [S:]maller prospective deficits may...