The Stimulus Debate: I'm with Larry (and Keynes)

Over the years, like many people, I've had my share of disagreements with Larry Summers, especially on the issue of financial regulation. But when it comes to fiscal policy and the impact of deficit-financed stimulus programs, I'm with him all the way, or most of it, anyways.

Writing in today's Financial Times, Summers makes the key distinction between an economy operating at full capacity and one, such as today's American economy, that has lots of unemployed workers and capital. At full...