Brad DeLong — Ordoliberalismus and Ordovolkismus

And rare these days is the competent economist Who has thought through the benefit-cost calculation and failed to conclude that the governments of the United States, Germany, and Britain have large enough multipliers, strong enough hysteresis coefficients for infrastructure investment programs, and sufficient fiscal space–favorable likely distributions of r-g–to make substantially more expansionary fiscal policies than they are currently following almost no-brainers. 

It is against the backdrop of this situation that we find aversion to fiscal expansion being driven not by pragmatic technocratic benefit-cost calculations but by raw ideology.…

Contrast this to China's, We will do what it takes to avoid missing our growth targets, increasing unemployment while rebalancing and maintain price and currency stability. This is why China is going to win the international economic competition, and kick Western butt. They get fiscal, and they know the between the currency issuer and currency users. They may not be in paradigm but at least they are in the right ball park.

The West? Hopeless with the current crop in charge.

"Liquidity trap" = "You are using the wrong tool."

WCEG — The Equitablog
Ordoliberalismus and Ordovolkismus
Brad DeLong