Political Calculations get mutlipliers wrong

Political Calculations talks about how the Fed offset the recent budget cuts with QE, thus preventing a predicted drop in growth.  Unfortunately for these bozos, their theory does not explain why the same period saw two upgrades to real growth, just just inflationary growth in NGDP.  They have their multipliers wrong, the unexpected growth was more l9ikely related to the cuts themselves.

What is going on is economists have become even more confused about government stimulus at the moment of collapse.  The government multipliers are worse, not better, at our zero bound.

Here is the key in their research:

The model, based on research from economists such as Christina Romer and Valerie Raney, assumes for every $1 in government spending cuts, the nation’s GDP only shrinks by about 60 cents, while every $1 increase in taxes will reduce the nation’s GDP by three times that amount below what it might be otherwise. Most of the fiscal drag is tax cut hike related:

That is a fraudulent multiplier, well trashed from so many perspectives. I have yet to find any specific multiplier from DC to have a multiplier greater than one in California. I find just the opposite. In fact, the multiplier looks close to .5, every half dollar cut on the budget yields a one dollar increase in GDP.