Diamond's Tip

Peter Diamond, our new Nobel laureate,
Says: "The stimulus works, and I'm for it.
In times of contraction,
More federal action
To bolster demand can restore it."   

In an interview on NPR, MIT economist Peter Diamond affirmed that the first fiscal stimulus package had averted much wider job losses, and that another round of fiscal stimulus should follow, this one aimed at states to prevent layoffs of public employees.  Mr. Diamond was one of three recipients of the 2010 Nobel Prize in Economics, for his study of "friction" in the job markets (i.e., if there are many open positions and many jobless, why can't they just get together?).