Bill Gross Sounds a Lot Like John Maynard KeynesBy
You have to read all the way to the last paragraph and follow a circuitously logical path to get there, but investment savant Bill Gross in his latest newsletter comes down on the side of John Maynard Keynes.
Keynes, as I describe in my cover story this week, said that in times like the present, fiscal stimulus is far more effective than monetary stimulus. In other words, government spending or tax cuts will do more to get the economy going than further attempts to lower interest rates (since nobody wants to borrow anyway). That’s where Gross ends up, too (pdf):
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