Mankiw Gives Obama Some Good Advice....

...On tax policy and tax multipliers. Here is a piece of the Harvard Prof's advice:

My advice to Team Obama: Do not be intellectually bound by the textbook Keynesian model. Be prepared to recognize that the world is vastly more complicated than the one we describe in ec 10. In particular, empirical studies that do not impose the restrictions of Keynesian theory suggest that you might get more bang for the buck with tax cuts than spending hikes.

The rest of the post can be found here.