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Let’s Have a Constructive Discussion
The Glittering Eye — ... increased government there’s more than a dollar’s worth of effect on the GDP. So, for example, if the multiplier is 1.5, for each dollar’s worth of spending, GDP increased by fifty cents. If the multiplier is less than one, then the measure would actually reduce GDP. Or at least that’s the way I understand it. Apparently, the Obama Administration has been working under the assumption that the Keynesian multiplier is 1.5. As regular as clockwork Paul Krugman responds: Actually, I’ve already taken that one on. But just ...

Paul Krugman on Robert Barro
J. Bradford DeLong's Grasping Reality with All Eight Tentacles — ... War and non-remembrance: As I’ve already pointed out,the prospect of a Keynesian stimulus is having a weird effect on conservative economists, as first-rate economists keep making truly boneheaded arguments against the effort. The latest entry: Robert Barro argues that the multiplier on government spending is low because real GDP during World War II rose by less than military spending. ...

Barro on Keynes Barro and Grossman
Angry Bear — ... . The substance of the op-ed is to report an estimate of the Fiscal multiplier 0.8 which is less than one. Thus, according to Barro, a stimulus will partially crowd out of investment, consumption or net exports and not just reduced leisure. Paul Krugman took Barro to task for using the huge WWII stimulus in his estimates, since the economy was at full employment during WWII. So have ...