The current economic question is what to do about budget deficits. The Greek crisis has made sovereign debt a genuine concern even among advanced countries. (I should say “especially among advanced countries,” because developing countries now have stronger fiscal positions, in a historic reversal of roles.) At this weekend’s G-20 Summit, Germany and the UK are defending strong fiscal austerity, with language that doesn’t even allow for the idea that short-term spending might be expansionary under severe recessionary conditions such as 2008-09. In the US, Peter Orszag is reported this week to have resigned as OMB Director, not just to get married, but supposedly in part out of frustration about the fiscal outlook and President Obama’s refusal, as part of any comprehensive deficit correction program, to reverse his campaign pledge against raising taxes on those earning less than $250,000.