Regular readers are sick of this, so just take a vacation and come back next week. I keep being told that no one’s interested even as I have record volume of viewers. (Didn’t Yogi Berra say “nobody goes there anymore, it’s too crowded.”) I’m interested, and I’m the one who decides.
In a perfect world I’d lay out a concise logical proof that Simon Wren-Lewis and Paul Krugman are wrong. And number each point. They’d respond saying which of my points were wrong, and why. Then I’d reply. . . .
Perhaps I can help.
DY = DC + DS + DT = DC + DS + DG Λ DG > 0 Λ -DC < DT ==> DY > 0
Which is false.
Proof by example:
Let DG = DT = 2, DC = -1, and DS = –1
Then both inequalities are satisfied and by the first equation.
DY = –1 –1 + 2 = 0
Which is what we were required to show.