http://www.washingtonpost.com/opinions/the-speed-read-paul-krugmans-end-this-depression-now/2012/05/04/gIQALJl31T_story.html The governments should finally start spending, Nobel laureate in economics Paul Krugman recommends in his new book End This Depression Now, where he sharply criticizes the austerity programs. So let's look a bit closer.
(
Read more... )
Comments 85
I am not familiar with Erhard, but I don't see a contradiction in that formulation, and that Krugman would not disagree with the idea that free enterprise should be the primary engine of the economy, but that this is only about the current crisis, and about it being a demand problem.
Reply
Reply
Reply
Suddenly, it has become easy to see how the euro - that grand, flawed experiment in monetary union without political union - could come apart at the seams. We’re not talking about a distant prospect, either. Things could fall apart with stunning speed, in a matter of months, not years. And the costs - both economic and, arguably even more important, political - could be huge. This doesn’t have to happen; the euro (or at least most of it) could still be saved. But this will require that European leaders, especially in Germany and at the European Central Bank, start acting very differently from the way they’ve acted these past few years. They need to stop moralizing and deal with reality; they need to stop temporizing and, for once, get ahead of the curve ( ... )
Reply
Reply
Reply
Reply
(The comment has been removed)
When a viable economy already exists, it could pull itself through production, in other words the machine has inertia. When there is none, stopping the wheel from moving means the whole machine stops altogether and it is very difficult to bring it back to motion.
Just a layman's sort of reasoning, if you don't mind.
Reply
(The comment has been removed)
Reply
Reply
(The comment has been removed)
Success of Spending: US.
Reply
In fairness to Krugman, he's not justifying himself with the benefit of hindsight: he said it in public at the time.
Reply
Reply
Leave a comment