Fighting Off Depression (Paul Krugman)
Fighting Off Depression
Article Tools Sponsored By
By PAUL KRUGMAN
Published: January 4, 2009
“If we don’t act swiftly and boldly,” declared President-elect Barack Obama in his latest weekly address, “we could see a much deeper economic downturn that could lead to double-digit unemployment.” If you ask me, he was understating the case.
Here’s my nightmare scenario: It takes Congress months to pass a stimulus plan, and the legislation that actually emerges is too cautious. As a result, the economy plunges for most of 2009, and when the plan finally starts to kick in, it’s only enough to slow the descent, not stop it. Meanwhile, deflation is setting in, while businesses and consumers start to base their spending plans on the expectation of a permanently depressed economy — well, you can see where this is going.
So, PK clearly thinks that deflation has not set in, yet.
- Glen Weyl: Price Theory and Market Design Fall 2013(2015.12.19)
- Inputs in the Production of Early Childhood Human Capital: Evidence from Head Start(2014.11.03)
- Great Teachers: How to Raise Student Learning in Latin America and the Caribbean(2014.09.17)
- On Piketty(2014.05.29)