Here we go with the RE means fiscal policy is impotent meme again! Well, this blog was on the case early - PGL and I, along with Nick Rowe in the comments, sorted the whole thing out back when the Stimulus was being enacted, I think. And now, surely, it is a stylized fact that that the stimulus was effective compared to the counter-factual - no?
On a completely different subject: remember back in the campaign Obama made noises about raising revenue by lifting the cap on the payroll tax? That still seems like a good idea to me, and something that might have political legs in the wake of Occupy and all that. I await evisceration at the hands of my fellow bloggers, at least, who IMS didn't cotton much to the idea at the time.
Oh and Happy New Year!