I learned from Ezra Klein's interview of Representative Paul Ryan what he would do to get the economy moving again: Raise interest rates!
I think literally that if we raised the federal funds rate by a point, it would help push money into the economy, as right now, the safest play is to stay with the federal money and federal paper.
Many people — myself among them — apparently emailed Klein about Ryan's remark. To me, there was only one possible explanation: He misspoke. Nothing else would make any sense. So Klein went back to Ryan for clarification and, lo and behold, he did not misspeak. Higher rates are his story and he's sticking to it. I'm somewhat unfamiliar with the economic principles that call for raising rates to stimulate economic activity; I'd learned it the other way around — lower rates to stimulate, raise rates to decelerate. But I'm nothing if not open-minded.



