Do You Trust The Stimulus?

Ryan Avent adds to Greg Mankiw's criticism:

It seems to me that fiscal stimulus will work well in countries where it is believed that fiscal stimulus will work well.

Whatdo I mean by this? Well, one obvious point is that a country thatunderstands stimulus should experience an immediate jolt to confidencewhen stimulus is enacted. But other factors are likely to be moreimportant. A country committed to stimulus will take care to prepare touse stimulus. It will construct a system of automatic...