Stiglitz gets it wrong

Overwhelmingly, the deficit increase has been caused by the enormous shortfall between the economy’s potential and actual output. Even as growth has resumed, the “output gap”—reflecting in high unemployment—has persisted.

Unemployment is accurate, the emratio is now stable, exactly where the economy wants it. It is Stiglitz who is inaccurate:

With monetary policy demonstrably ineffective in pulling us out of our malaise, fiscal policy is only recourse to putting America back to work.

We are back at work. What we suffer from is Stiglitz and his crew wanting central government to force a different economy upon us, an economy we do not choose.