I made a similar argument last month.
The WSJ editorializes that Keynesian spending has come to a dead end.
The IMF has a study on [deficits] covering the whole G-20 which shows that over half of the increase in deficits since the crisis is due to collapsing tax revenues. Less than 10 percent is due to increasing spending. A very large additional share is due to the very low rate of growth in relation to interest payments on national debts.... [Deficits are] an artifact of the financial crisis, it's not because governments have gone whole hog on spending programs; they haven't done that.
Steve Hanke opposes exchange rate controls.
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