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Cochrane writes as if our moral revulsion at Madoff's fraud will overwhelm the logic of his interpretation of Keynes. I can't help but wonder whether redistributing a little bit of wealth from those who have more money than they know what to do with to those who are eager to spend whatever they can get would make the rest of us better off -- at least temporarily. Maybe we could accomplish the same sort of effect by tweaking the tax code. At least that way we could avoid rewarding people who break the law.
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