Incentives at work

Tales of shipping prisoners and buying flats.

 

Fiscal stimulus and GDP as it plays out: simple Keynesian prediction from 2009.

From Deutsche Bank, courtesy Menzie Chinn.

Kenynesian orthodoxy at work

It's not a surprise things are looking dicey right now. See http://krugman.blogs.nytimes.com/2009/12/27/stimulus-timing/ .