James Hamilton of Econbrower suggests that a centrist Romney-Ryan administration could achieve great things. I’m intrigued by the possibility of a Romney presidency coexisting with a Democratic Senate. As Josh Kraushaar has observed, there will be a number of Senate Democrats representing Republican-leaning or swing states who might constitute a “Gang of Eight” with whom he could cut significant budget deals. To get there, however, Romney will need popular momentum, which is why I continue to hope that he’ll embrace a monetary policy more conducive to growth.
by Reihan Salam