Kling on how fiscal policy should be updated to fit our modern economy which is based on the production of organizational capital versus the production of widgets. He expounds on this idea (originally Garett Jones' I believe).
He also provides an interesting quote by Robert Shiller on the herd mentality:
Consider this possibility: after all these months, people start to think it's time for the recession to end. The very thought begins to renew confidence, and some people start spending again -- in turn, generating visible signs of recovery. This may seem absurd, and is rarely mentioned as an explanation for mass behavior late in a recession, but economic theorists have long been fascinated by such a possibility.
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