I agree the store of wealth function is by far the weakest function of money, and the unit of account the strongest. You just need enough of this storage function to keep people using it for the unit of account and medium of exchange.
Turns out lower capital gains taxes don’t drive investment. In other news, the sky is probably blue, according to a 12 year study by economists. This controversial finding is disputed by University of Chicago professor John Cochrane – and we have him with us in the studio today.
The story isn’t the leak, it’s the fact they deliberately cut out the necessary amount of spending. And it wasn’t just Summers, it was my man Orszag too. What the hell were they thinking? I argued for more stimulus two weeks before Krugman when I wrote a few posts over at Kos. I got huge push back from the morons over there.After Krugman wrote it, the entire site was lit up with saying we needed more stimulus.