In a perhaps surprising move for someone who said “deficits matter again” upon Trump’s election, Krugman now makes the case for perpetual budget deficits in the range of 4% of GDP. This will facilitate much-needed “stimulus spending” in an era of weak growth and low inflation. Tom and Bob point out the fallacies in this thinking.

Krugman Column

“The Case for Permanent Stimulus” (March 7, 2020)

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