Paul Krugman: People should be reading Adam Posen

[n2doc]

Everyone’s looking back to the 1930s for policy guidance — and that’s a good thing. But we don’t have to go back that far to see how fiscal policy works in a liquidity trap; Japan was there only a little while ago. And Adam Posen’s book, especially Chapter 2, Fiscal Policy Works When It Is Tried, is must reading right now.

link- with links to pdf's:

http://krugman.blogs.nytimes.com/2008/12/01/people-should-be-reading-adam-posen/

[unhappycamper]

1. Thanks for posting.

I'll read this later today.

[Democrats_win]

2. We've been using fiscal policy during the whole bush error.

Good grief, he doubled the national debt from five trillion to ten trillion dollars. This year the budget deficit might be one trillion dollars.

A new FDR-style WPA is about the only thing we should be doing. Dump private enterTHIEVEs. Without private enterThieves, we won't need to bail out the banks because they don't matter. Heck they're putting OUR money in Spain's roads (CITI bought some Spanish road company). Truly, Americans need to wake up to the fact we are bing f***** royally by king george. We need to take back our money quick because it's being wasted.

Krugman makes it all sound reasonable. It's a disaster and action is needed including putting a lot of people in jail.

[truedelphi]

3. Agree with you one hundred per cent.

Often I come to DU when I want a laugh - last week there were some DU'ers applauding the fact that now their bank accounts would be insured by the FDIC for $ 250 K a pop.

Hey I have a pantry full of brand new toilet paper rolls - so I can join the Fed in helping insure the bank accounts.

And as far aas the Citigroup buying in Spain - they have to hurry up and get the money out of this country before the people start to realize what is going on and demand a recovery program- and better to have it overseas than here. Overseas we cannot recover it, or even have the smallest bit of oversight.