The strength of the stimulus in the Philippines and elsewhere

The Philippine Daily Tribune is skeptical about the strength of the economic stimulus in the Philippines (see its cartoon below).  

My interpretation of the official figures and my view on the size of the Keynesian multiplier are here.  The need for stimulus in the country does not yet seem obvious (officially we are not yet in recession), but more importantly, the running debate among economists generally on how the major world economies are coping with the crisis does not point to easy-to-reach conclusions for the Philippine case.  

I have argued elsewhere that the content and quality of the government’s response are more important than the numerical peso or dollar amounts of “stimulus.”

 

tribune-cartoon-on-stimulusedi011

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