Monday: August 1, 2011
- The fine print on the debt deal according to The New York Times.
The bill, in short, is not likely to have profound effect on the recovery in the near-term. It should be noted, of course, that the recovery still has plenty of its own problems, and that fiscal policy in 2012 will tend to be contractionary on the whole as the last vestiges of the 2009 stimulus roll off the budget and as the payroll tax cuts agreed to for 2011 expire. But that would be true even if a 'clean' debt ceiling increase had been adopted with no changes to fiscal policy.