The global credit system is in a state of paralysis

What to Do

Paul Krugman, New York Review of Books: "What the world needs right now is a rescue operation. The global credit system is in a state of paralysis, and a global slump is building momentum as I write this. Reform of the weaknesses that made this crisis possible is essential, but it can wait a little while. First, we need to deal with the clear and present danger. To do this, policymakers around the world need to do two things: get credit flowing again and prop up spending."

//www.truthout.org/113008Y

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Deficits and the Future

PAUL KRUGMAN

nytimes.com — The deficit worriers have it all wrong. Under current conditions, there's no trade-off between what's good in the short run and what's good for the long run; strong fiscal expansion would actually enhance the economy's long-run prospects. Fiscal expansion will be even better for America's future if a large part of the expansion takes the form of public investment — of building roads, repairing bridges and developing new technologies, all of which make the nation richer in the long run.

//ga3.org/ct/Qd20pgF1-4UD/



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