Economic stimulus may be right policy at right time but were done awfully wrongly

Comments on Alan Wood “Economic stimulus was right policy at right time”, 17/12/2009, http://www.theaustralian.com.au/news/opinion/economic-stimulus-was-the-right-policy-at-the-right-time/story-e6frg6zo-1225811144761

While David Gruen put some useful arguments as most conventional economists would do, he has missed an important point, that is, this time there is a common action of fiscal expansion in many countries. This differs from the implicit assumptions used to derive the monetary and exchange leakage result.

The traditional argument of leakage by only one country's fiscal policy due to monetary and exchange effects is invalid in this rare international circumstance. Every countries were doing the same and there was no place to leak to!

Further there is no justification whatsoever for fiscal wastefulness and efficiency and ineffectiveness, even in this circumstance of a rare financial and economic crisis.

One has to note that Gruen is a Treasury official. He has to defend the government's policy, doesn't he?

The government has got so much resource to design and implement prudent fiscal policies.

The federal government's fiscal spending in the wake of the crisis or in the excuse of dealing with the crisis, is just so shameful and disgraceful.

There are so many examples.

There is no credible defence for it whatsoever.

Emergence does not justify overkill!

It is just of the same quality as Rudd's essay on the economic crisis and its causes!